It was good news, bad news Tuesday for maple leaf stocks Bank of Montreal (NYSE: BMO) and Canadian Solar Inc. (NYSE: CSIQ). While both reported better than expected quarterly results, Bank of Montreal reported lower second-quarter earnings and said it would lay off 1,100 employees, and Canadian Solar posted a first-quarter loss due to plunging revenues.

Bank of Montreal, Canada's fourth-largest bank, reported its profit declined to C$358 million (US$317 million), or 61 Canadian cents per share, in the quarter that ended April 30. Results included one-time charges of C$80 million for losses in BMO's backup financing operations and C$80 million in severance costs for job cuts. Adjusted earnings came to 93 Canadian cents per share, just above analysts' expectations.

Analyst upgrades:

• UBS upgraded Target (NYSE: TGT) to Buy from Neutral and raised its price target to $52 from $45 citing reduced inventories, some credit stability, and an improved back-to-school period.
• Credit Suisse said concerns regarding Safeway's (NYSE: SWY) price position are overblown and that earnings risk is limited. The firm upgraded shares to Outperform from Neutral and raised the target price to $25 from $22.
• Oppenheimer upgraded Canadian Solar (NASDAQ: CSIQ) to Outperform from Perform as it believes the story is underappreciated following the recent sector rally. The firm has a $14 price target on the stock.
• CME Group (NASDAQ: CME) was upgraded to buy from Neutral at Goldman.
• Freeport McMoRan (NYSE: FCX) was upgraded to Overweight from Neutral at JP Morgan.
• Gilead Sciences (NASDAQ: GILD) was upgraded to Buy from Neutral at FTN Equity.

Last week, JA Solar Holdings Co. Ltd. (NASDAQ: JASO) posted a quarterly loss and lowered its guidance. But as interest in alternative energy continues to grow, analysts polled by Thomson Financial are still looking for good things from solar energy concerns scheduled to report earnings this week.

Strong growth at Trina Solar Ltd. (NYSE: TSL) in the third quarter prompted it to lift its guidance back in October. Analysts expect the Chinese company to post profits that are 76.3% higher than a year ago, or $1.18 per share on revenues of $268.4 million (+225.0%). Though Trina Solar missed estimates in the second quarter, analysts on average recommend buying TSL. Shares are down 81.4% from a year ago and trading near an all-time low.

Earnings of rival LDK Solar Co. Ltd. (NYSE: LDK) are expect to have risen 47.9% to $0.71 per share on revenues of $486.7 million (+206.6%). Also based in China, LDK has not missed estimates in recent quarters; in fact, it blew past expectations in the second quarter. Yet the consensus recommendation is to hold LDK. Like Trina Solar, LDK's shares are trading near an all-time low; the share price has fallen 50.0% in the past year.

Analysts anticipate third-quarter earnings for Canadian Solar Inc. (NASDAQ: CSIQ) to be a whopping 96.3% higher than a year ago, or $0.54 per share on revenues of $248.0 million (+154.5%). The company easily topped estimates in the previous quarter. ReneSola Ltd. (NYSE: SOL) and Suntech Power Holdings Co. Ltd. (NYSE: STP) are also expected to report earnings growth of 29.7% ($0.37 per share) and 23.8% ($0.42 per share), respectively. All three of these stocks reached 52-week lows last week, and all are considered buys.

Canadian Solar (NASDAQ: CSIQ) develops, manufactures and markets solar module products for the conversion of sunlight into electrical energy. Offerings include solar panels for residential and industrial use, plus customized modules that customers incorporate into their own products. The modules power such special-purpose devices as bus stop lighting systems and vehicle battery chargers. Canadian Solar is incorporated in Ontario, but conducts all of its manufacturing operations through six subsidiaries in China. The firm is actively involved in government projects to bring solar power to rural Chinese communities. Clients are distributors, systems integrators and manufacturers in North America, Asia and Europe.

The company pleased investors last week, when it raised its 2008 output guidance from 200-220 MW to 230-260 MW and boosted its estimated annual revenue from $650-$750 million to $750-$870 million ($836.06M consensus). Management pointed to continued robust market demand for its products.

Canadian Solar (NASDAQ: CSIQ) is recently up $5.97 to $48.49 after increasing its 2008 annual revenue and output guidance to reflect the sales of e-Module products.

CSIQ call option volume of 15,574 contracts compares to put volume of 5,013 contracts. CSIQ July call option implied volatility is at 86; puts are at 97; near its 26-week average according to Track Data, suggesting non-directional price risk. CSIQ puts are more expensive than calls because CSIQ is difficult to borrow.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Activision Inc. (NASDAQ: ATVI) beat Q4 expectations and raised its fiscal 2009 guidance.
• Air France-KLM swung to a loss in the fourth quarter and warned of tough times ahead.
• BJ's Wholesale Club (NYSE: BJ) Q1 earnings soared, beating expectations, and it raised its forecast.
• Canadian Solar Inc. (NASDAQ: CSIQ) beat Q1 estimates on robust demand and favorable exchange rates.
• Foot Locker Inc. (NYSE: FL) Q1 profit declined, hurt by an impairment charge and nearly flat sales.
• Gap Inc. (NYSE: GPS) beat Q1 earnings estimates by managing costs and inventory.
• Home Depot Inc. (NYSE: HD) Q1 earnings tumbled on a one-time charge and the housing slump.
• Intuit Inc. (NASDAQ: INTU) beat Q3 expectations and announced a share buyback program.
• Lenovo Group Ltd. (OTC: LNVGY) Q4 earnings more than doubled on strong global distribution.
• Lowe's Companies Inc. (NYSE: LOW) reported a so-so first quater in line with Wall Street expectations.
• NetEase.com Inc. (NASDAQ: NTES) Q1 earnings declined due to increased tax burden.
• Saks Inc. (NYSE: SKS) missed Q1 earnings estimates but beat revenue expectations.
• Solarfun Power Holdings Co. (NASDAQ: SOLF) Q1 revenue surged 529% from the previous quarter.
• Suntech Power Holdings Co. (NYSE: STP) Q1 revenues soared and earnings more than doubled.

Additional earnings highlights:
Hewlett-Packard, Target, Barnes & Noble, Campbell, Staples and others
Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

Suntech Power Holdings Co. (NYSE: STP), which saw its stock surge some 150% in 2007, didn't have such a good 2008 so far with its stock plunging about 44% year-to-date. But since setting a 52-week low of $28.19 on March 22, the stock has rebounded nicely, up over 55%. Roller coaster or what?!

Well, today, the maker of photovoltaic cells and modules said first-quarter earnings more than doubled on 76% higher revenue. Earnings reached $55.8 million, or 33 cents an American depositary share, beating analysts estimates of 28 cents. Revenue reached $434.5 million. Gross margins also expanded nicely and Suntech reiterated revenue estimates for 2008.

Early in the morning, STP shares jumped over 7% in premarket trading in response to the report but have not kept this up. Shares are now trading at $45.73, down over 1%, probably declining with the rest of the sector following Goldman Sachs's downgrade of Solarfun (NASDAQ: SOLF) to Sell from Neutral. SOLF shares are down over 18% taking LDK Solar (NYSE: LDK), Trina Solar (NYSE: TSL) and Canadian Solar (NASDAQ: CSIQ) down with it -- 5%, 8% and 13% respectively, to name but a few.

Canadian Solar (NASDAQ: CSIQ) develops, manufactures and markets solar module products for the conversion of sunlight into electrical energy. Offerings include solar panels for residential and industrial use, plus customized modules that customers incorporate into their own products. The modules power such special-purpose devices as bus stop lighting systems and vehicle battery chargers. Canadian Solar is incorporated in Ontario, but conducts all of its manufacturing operations through six subsidiaries in China. The firm is actively involved in government projects to bring solar power to rural Chinese communities. Clients are distributors, systems integrators and manufacturers in North America, Asia and Europe.

The company pleased investors last week, when it reported Q1 EPS of 61 cents and revenues of $171.2 million. Analysts had been looking for 31 cents and $151.9 million. The CEO cited robust market demand, strong pricing and effective management of foreign exchange exposure for the successful quarter. Management also guided Q2 revenues to $185-$190 million, versus consensus of $167.62 million.

Canadian Solar (NASDAQ: CSIQ) is recently up $1.02 to $45.92 in pre-open trading as shares rally on alternate energy

CSIQ designs, manufactures and sells solar cell and module products that convert sunlight to electricity.

CSIQ overall option implied volatility of 77 is below its 26-week average of 93 according to Track Data, suggesting decreasing price risk.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

MOST NOTEWORTHY: Anadigics, Crystal River Capital and Canadian Solar were today's noteworthy downgrades:

• Oppenheimer downgraded shares of Anadigics (NASDAQ: ANAD) to Perform from Outperform on valuation following the recent run-up.
  
• Wachovia downgraded Crystal River Capital (NYSE: CRZ) to Market Perform from Outperform citing the uncertain near-term strategic outlook.
  
• Broadpoint downgraded shares of Canadian Solar (NASDAQ: CSIQ) to Buy from Strong Buy on valuation following yesterday's rally but raised their target to $45 from $29.

OTHER DOWNGRADES:

• UBS cut Sunstone Hotel Investors (NYSE: SHO) to Neutral from Buy.
  
• KeyBanc downgraded Wabtec (NYSE: WAB) to Hold from Buy.
  
• Goldman downgraded Fiserv (NASDAQ: FISV) to Neutral from Buy.
  
• Suntrust downgraded Spectrum Brands (NYSE: SPC) to Neutral from Buy.

VISICU, Inc. (NASDAQ: EICU): Philips Electronics is buying the company. The stock moved up to $11.76 from a 52-week low of $6.57.

Canadian Solar, Inc. (NASDAQ: CSIQ): Thanks to a big rally in renewable energy stocks, shares are up to $27.15 from a 52-week low of $6.50.

EMCORE Corporation (NASDAQ: EMKR): This company is buying a piece of Intel Coporation (NASDAQ: INTC)'s telecom assets. It traded up to $14.11 from 52-week low of $3.84.

Hess Corp. (NYSE: HES): The market is still bullish on oil prices and Hess moved to $90.57 from 52-week low of $45.96.

Douglas A. McIntyre is an editor at 247wallst.com.

Several stocks made new 52-week highs today on large volume.

Adams Respiratory Therapeutics, Inc. (NASDAQ: ARXT): Personal care products maker Reckitt Benckiser made a buy-out offer. Shares moved up to $59.30 against a 52-week low of $27.25.

MGI Pharma, Inc. (NASDAQ: MOGN): Japanese pharmaceutical maker Eisai will buy the company. Shares rose to $40.23 compared to 52-week low of $16.98.

Millennium Pharmaceuticals, Inc. (NASDAQ: MLNM): This company's late stage cancer drug shows promise. The company hit $16.62, well up from 52-week low of $9.49.

Canadian Solar Inc. (NASDAQ: CSIQ): A new contract for peer LDK Solar Co., Ltd. (NYSE: LDK) pulled the entire sector higher. Canadian Solar hit $24.83 against a 52-week low of $6.50.

DynCorp International Inc. (NYSE: DCP): A new Army contract boosted shares to $25.97, compared with a 52-week low of $13.51.

Douglas A. McIntyre is an editor at 247wallst.com.

John McNay, portfolio manager of Essex Investment Management, provided some good investment ideas on the evolving high-tech power business in this weekend's Barron's Magazine (subscription required). A few of these we blogged about in the past, but they're worth noting again.

• Sunpower Corporation (NASDAQ: SPWR), the Cypress Semiconductor Corporation (NYSE: CY) spin off, makes semiconductors for solar cells and solar panels
• MEMC Electronic Materials Inc (NYSE: WFR) makes the polysilicon that is needed to manufacture the solar cells and panels based on semiconductor technology
• Suntech Power Holdings (NYSE: STP), First Solar Inc (NASDAQ: FSLR), Canadian Solar Inc (NASDAQ: CSIQ) and Trina Solar (NYSE: TSL) were other stocks mentioned.

Sunpower and MEMC we have blogged about and know the companies reasonably well. The others you have to do your homework on, as these are new ideas to this Fly.

TJ Rodgers, Cypress Semiconductor's CEO, referred to Sunpower as Intel during the 1970s. That is a big statement. This is an important industry that will get a lot of investors' attention during the next five years. Solar energy utilizing semiconductor technology is an investment theme that is still in its very early stages.