First Solar Sales Off; Shares Tumble

NEW YORK (TheStreet) -- First Solar(FSLR Quote), the country's biggest solar manufacturer, beat profit forecasts in its third-quarter earnings report delivered Wednesday afternoon. For its efforts, First Solar's shares were pummeled by investors on Thursday on its more disappointing sales figures.

At the closing bell, First Solar lost $25.11, or 16.6%, at $126.47.

In its latest quarterly showing, the thin-film module maker grew net income to $153.3 million, or $1.79 a share. In the year-ago quarter, earnings per share landed at $1.20.

Analysts surveyed by Thomson Reuters forecast a smaller EPS at $1.74.

Sales for First Solar also grew 38% to $480.9 million from the year-earlier period, but fell well short of consensus estimates cast at $528.8 million. Still, the shortfall was largely due to the company's delay in recognizing $58 million in revenue from its Sarnia power project, which was over 65% complete in the third-quarter.

Though it beat the street view, gross margin was also down to 50.9% from 56.7% in the immediately preceding quarter, due in part to its rebate program in Germany. First Solar believes gross margin will fall to 41% to 44% in the current quarter.

Elsewhere on Friday, American depositary receipts for Suntech Power(STP Quote) and Yingli Green Energy(YGE Quote) gained 6.6% and 3.8%, each. SunPower(SPWRA Quote) shares fell 0.3% on the day.

-- Written by Sung Moss in New York

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