Solar panel maker First Solar Inc. (FSLR), Thursday reported a lower third-quarter profit, hurt mainly by restructuring charges and a decline in revenues. Earnings for the quarter easily trumped analysts' estimates, but revenues fell short of expectations.
Moving ahead, the company lifted the bottom-end of its full-year 2012 earnings guidance, but lowered its revenue outlook. Shares of First Solar dropped over five percent in the extended hours trading.
First Solar, which makes thin-film solar modules, said sales for the three-month period dropped to $839.1 million from $1.01 billion last year. Analysts estimated revenues of $966.5 million for the quarter. The company attributed the decline to the construction completion or reduced construction activity on solar farms.
First Solar and other solar panel makers of late have been struggling, as a global oversupply of solar panels and weakened demand have driven prices lower. The company has now turned its focus to build solar farms on its own rather than selling solar panels to other companies, an initiative to boost growth from the plunging panel prices.
Tempe, Arizona-based First Solar's third-quarter profit dropped to $87.9 million or $1.00 per share from $196.5 million or $2.25 per share last year.
The third quarter result included restructuring charge of $0.27 per share. Excluding the charge, adjusted net income was $111.5 million or $1.27 per share. On average, 28 analysts polled by Thomson Reuters expected earnings of $1.04 per share for the quarter. Analysts' estimates typically exclude special items.
Chief Executive Jim Hughes said, "Despite continued uncertainties and over-supply conditions in the market, First Solar delivered another strong quarterly performance. Our quarterly performance coupled with our recent project wins in sustainable markets demonstrates we are making meaningful progress in achieving our strategic plan for long-term growth and value creation."
Looking forward to the full year 2012, the company now expects adjusted earnings of $4.40 to $4.70 per share, compared to prior guidance of $4.20 to $4.70 per share. Analysts currently estimate earnings of $4.43 per share for 2012.
The company lowered its full-year sales guidance to a range of $3.5 billion to $3.8 billion, from its prior guidance of $3.6 billion to $3.9 billion. Analysts currently estimate revenues of $3.72 billion for 2012.
First Solar lowered its revenue forecast due to weather-related disruptions in supply chain and at certain project sites which may push the expected closing of the project sales from this year to next year.
FSLR closed Thursday's trading at $24.75, up $0.45 or 1.85%, on a volume of 4.7 million shares. The stock, however, lost $1.05 or 4.24% in after-hours trade.
For comments and feedback: editorial@rttnews.com