First Solar, Inc. (FSLR) Wednesay reported an increase in its profit for the third quarter, as revenues grew more than 35% from last year. Per share earnings came in above the Street expectations, but revenues missed the analysts' view, sending shares of the company down by more than 14% in the after hours trading.
The Tempe, Arizona-based company's net income was $153.34 million or $1.79 per share, up from $99.27 million or $1.20 per share for the year-ago period. On average, 36 analysts polled by Thomson Reuters expected the company to report earnings of $1.74 per share. Analysts' estimates typically exclude special items.
Quarterly revenues increased to $480.85 million from $348.69 million for same period last year. Thirty-four analysts expected revenues of $528.78 million for the third quarter. The revenues excluded the Sarnia project which was over 65% completed at quarter end, the company said.
Cost of sales rose to $235.86 million from $153.25 million, and total operating expenses increased $82.20 million from $65.29 million a year-ago, reflecting an increase in research and development expenses to $24.14 million from $9.95 million for the same period last year.
Interest income for the third quarter declined to $2.40 million from $5.32 million for the prior year period. The company recognized a foreign currency gain of $114 thousand compared with foreign currency loss of $1.89 million for the year-ago period.
In the sequentially preceding second quarter, the company's net income had more than doubled to $180.60 million or $2.11 per share from $69.70 million or $0.85 per share in the prior-year quarter, as revenues increased by more than 90% to $525.90 million from $267.04 million.
In October, First Solar become the first pure-play renewable energy company to be added to the S&P 500, replacing drug maker Wyeth Corp. (WYE) in the index.
The company, in early September, had announced that it has signed a memorandum of understanding or MoU with the Chinese government to build a two gigawatt solar power plant in Ordos City, Inner Mongolia, China. According to the MoU, the project is expected to completed in four phases, while first phase of 30 meagawatt or MW plant will be constructed by June 2010, the last phase will be completed by 2019.
Enbridge Inc. (ENB, ENB.TO) and First Solar Inc. (FSLR) in early October said they have entered into an agreement, according to which Enbridge will acquire a 20 MW solar energy project which is being developed and constructed by First Solar near Sarnia, Ontario. The project is expected to be completed by the end of this year and will be the largest photovoltaic solar energy facility in operation in Canada and one of the largest in North America.
Enbridge expects Sarnia project to generate enough power to meet the needs of about 3,200 homes and help to save the equivalent of approximately 6,600 tonnes of carbon-di-oxide per year.
In August, the maker of solar modules First Solar said it has received a contract from Los Angeles Department of Water and Power or LADWP to build a large-scale solar power project with a generation capacity of 55 MW in Imperial County, California. The construction of the plant is expected to begin next year and be completed in 2011.
Amongst others in the industry, Marlboro, Massachusetts-based, Evergreen Solar Inc. (ESLR) is slated to report its financial results for the third quarter on November 4. Analysts expect the company to report loss of $0.08 per share on revenues of $73.86 million for the quarter.
Yet another competitor, Changzhou, China-based Trina Solar Ltd. (TSL) is slated to report its financial results for the third quarter on November 19. Analysts expect the company to report earnings of $0.75 per share on revenues of $216.05 million for the quarter.
For nine months, net income increased to $498.52 million or $5.88 per share from $215.56 million or $2.63 per share a year-ago and revenues rose to $1,424.9 million from $812.7 million for the same period last year.
First Solar expects full-year revenue in the range of $1.975 billion to $2.025 billion, which is at the higher end of the earlier issued guidance range. Analysts currently expect the company to report revenues of $2.00 billion for the full year.
Wednesday, FSLR closed at $151.82, up $1.60 or 1.07%, on a volume of 5.07 million on Nasdaq. In after hours, the stock dropped by 14% reacting to the lower than expected revenue and was last traded at $130.13, down $21.69 or 14.29%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.