The Zacks Analyst Blog Highlights: Nissan Motor, Toyota Motor, Honda Motor, First Solar and China Sunergy Company

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May 13, 2011, 09:46 ET

CHICAGO, May 13, 2011 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Nissan Motor Co. (OTC: NSANY), Toyota Motor Corp. (NYSE: TM), Honda Motor Co. (NYSE: HMC), First Solar Inc. (Nasdaq: FSLR) and China Sunergy Company Ltd. (Nasdaq: CSUN).

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Here are highlights from Thursday's Analyst Blog:

Nissan Swings to Profit

Nissan Motor Co. (OTC: NSANY) posted a profit of ¥30.77 billion ($380 million) in the fourth quarter of the year in stark contrast to a loss of ¥11.6 billion in the year-ago quarter. Sales in the quarter appreciated 10% to ¥2.35 trillion ($29 billion).

For the fiscal year ended March 31, 2011, the automaker reported more than sevenfold increase in profit to ¥319.2 billion ($3.94 billion) from the previous fiscal year. Sales increased 17% to ¥8.77 trillion ($108 billion).

Nissan sold 4.185 million vehicles during the year, an increase of 19.1% from 3.515 million vehicles in the previous year. The company's sales in its largest market, China, surged 35.5% to 1.02 million vehicles.

Nissan did not provide any sales and earnings for the fiscal year ending March 31, 2012 like its other domestic rivals, Toyota Motor Corp. (NYSE: TM) and Honda Motor Co. (NYSE: HMC) due to uncertainties emanating from the earthquake, tsunami and nuclear crises in Japan.

However, the company's CEO Carlos Ghosn asserted that production at Nissan's global plants will return to its pre-disaster level by October this year.

Yesterday, Toyota reported a profit of ¥408.18 billion ($5.07 billion) or ¥130.16 ($1.60) per share for its fiscal 2011 ended March 31, 2011 that almost doubled from ¥209.46 billion or ¥66.79 per share a year ago.

The increase in profit was attributable to positive impact of ¥490.0 billion due to marketing efforts and ¥180.0 billion due to cost reduction measures, partially offset by a negative impact of ¥110.0 billion due to the earthquake in Japan and ¥290.0 billion due to unfavorable exchange rates.

However, Honda's results were disappointing. The automaker revealed a 38% fall in profit to ¥44.55 billion ($536 million) or ¥24.72 per share (30 cents per share) in the fourth quarter of the fiscal year ended March 31, 2011 from ¥72.18 billion or ¥39.78 per share in the same quarter of prior fiscal year.

The decline in profit was attributable to unfavorable currency translation effects, higher selling, general and administrative (SG&A) expenses and the tsunami and earthquake in Japan. These more than offset the positive impact from cost reduction measures, lower R&D expenses, increase in sales volume (except in the Automobile segment) and model mix\ and operating income related to licensing agreements.

First Solar Seeks Greater Presence

Solar planes maker First Solar Inc. (Nasdaq: FSLR) and China Power International New Energy Holding Limited (CPINE), a wholly-owned subsidiary of China Power New Energy Development Company Limited (CPNE), have agreed to pool their resources for solar photovoltaic (PV) projects in China, the United States and other international markets.

Per the agreement, First Solar and CPINE will initially explore collaboration on solar PV projects in China and identify project investment opportunities for CPINE in the U.S. and other global solar markets.

The agreement will leverage CPINE's advantages in the domestic solar power industry enhancing its role as a leading renewable energy developer in China.

The Chinese company has plans to develop 2 GW of solar capacity in China by 2020. Additionally, the agreement will boost First Solar's expertise as a leading global solar PV technology company, helping it to further expand its business in China along with its 2.4 GW pipeline in North America.

Both China and the U.S. are important markets with vast potential for solar energy, and this agreement can serve as a model for U.S.-China collaboration on renewable energy. Apart from gaining command in theChinese and U.S. power markets, First Solar and CPINE said this agreement has the potential to help expand in other international markets, opening up tremendous growth opportunities.

Based in Phoenix, Arizona, First Solar designs, manufactures and sells solar electric power modules using a proprietary thin film semiconductor technology. The company's solar modules employ a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity.

Last week, First Solar reported first quarter 2011 robust results, with earnings per share of $1.33 smoothly sailing past the Zacks Estimate. For fiscal 2011, First Solar reaffirmed its sales guidance range of $3.7 billion – $3.8 billion. Fiscal 2011 earnings per share guidance range is also reaffirmed between $9.25 and $9.75.

First Solar's growth story is marked by its utility-based order backlog and strong balance sheet. The company focuses on capacity build-outs, technological enhancements and cost minimization. At the same time it also enjoys technological superiority over its silicon-based solar peers.

We are currently Neutral on this Zacks #3 Rank stock. This is in line with its peers like China Sunergy Company Ltd. (Nasdaq: CSUN).

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