First Solar Leads S&P 500 Gainers After Earnings Surprise

By Benzinga,  August 02, 2012, 10:59:50 AM EDT

First Solar (NASDAQ: FSLR ) shares gained more than any other S&P 500 stock early Thursday, after the company boosted earnings guidance and reported more than doubling the prior year's second-quarter revenue.

The solar panel producer posted net income of $111 million, or $12.7 per share. This income was up 82 percent from 61.1 million, or 70 cents per share a year earlier. Analysts had been expecting earnings of 90 cents, on average.

"We have more investors seeking to buy our projects than we have projects to sell them," said CEO Jim Hughes on the company's post-earnings conference call.

Thursday's stock price rise marked a stark turnaround for a company that shuttered its factory in Germany earlier this year and cut 2,000 jobs amid a solar supply glut and brutal industry pricing.

In Nasdaq trading, shares rose more than 20 percent to $18.92, a level not seen since early May. The stock was still down more than 60 percent from its year high near $50, and more than 85 percent since last year's peak. First Solar revenue rose to $957 million, up from $425 million a year earlier and $460 million in the first quarter.

Management said it saw an increase in both the number and size of projects in the quarter, including the Antelope Valley Solar Ranch 1 project in California. In addition, management now expects full-year earnings in a range of $4.20 to $4.70 a share, up from its previous view of $4 to $4.50

On its conference call, the company said it expects to produce 1800 to 1900 megawatts of panels this year, up from a previous range of 1400 to 1700 megawatts.

(c) 2012 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: FSLR



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