Sector Snap: Solar Shares Up On Clean Tech Hopes

Analysts polled by Thomson Reuters expected, on average, a loss of 17 cents per share on revenue of $100.1 million.

Solarfun said results were hurt by its customers' large inventories. Often customers will hold off on making more purchases until their existing supplies have dwindled. The company said it believes the first quarter was a low point for industry demand and for the company.

"We are cautiously optimistic for a more meaningful rebound, particularly during the second half of this year and heading into 2010," said President Peter Xie.

Lazard Capital analyst Sanjay Shrestha upgraded Solarfun to "Hold" from "Sell" due to its stronger-than-expected first-quarter results and expectations that the ongoing reduction in polysilicon prices will boost margins, despite lower average selling prices.

Meanwhile, China-based solar parts maker JA Solar posted a loss of 193.3 million yuan ($28.3 million, or 18 cents per share), compared with a profit of 154.5 million yuan a year earlier. Revenue fell 79 percent to 231.7 million yuan ($33.9 million) from 1.12 billion yuan.

Analysts polled by Thomson Reuters expected, on average, a loss of 5 cents per share on revenue of $107.9 million.