First Solar Profit Surges, Lifts FY View; Shares Up 9%

(RTTNews) - Solar panel maker First Solar Inc. (FSLR), Thursday reported a third-quarter profit that more-than-doubled from a year ago, as revenues surged on higher shipments and new projects with the solar industry recovering from a slump. Earnings for the quarter easily trumped analysts' estimates, as did revenues.

Moving ahead, the company lifted its full-year 2013 earnings outlook, but lowered its revenue projections. Following the news, shares of First Solar surged nine percent in the extended trading hours.

First Solar, which makes thin-film solar modules, said sales for the three-month period jumped to $1.27 billion from $839.1 million last year. Analysts expected sales of $988.63 million for the quarter.

The company attributed the sales growth to the Desert Sunlight and ABW projects and higher sales volume to third-party module-only customers in the third quarter of 2013.

Tempe, Arizona-based First Solar's third-quarter profit rose to $195.0 million or $1.94 per share from $87.9 million or $1.00 per share last year.

Adjusted earnings for the quarter were $2.28 per share. On average, 19 analysts polled by Thomson Reuters expected earnings of $1.00 per share for the quarter. Analysts' estimates typically exclude special items.

Gross margin for the third quarter improved 0.4 basis points to 28.8 percent, with selling, general and administrative expenses dropping 13 percent from last year.

Looking forward to the full year, the company now expect earnings in the range of $4.25 to $4.50 per share, up from its prior estimate of $3.75 to $4.25 per share. Analysts currently expect earnings of $3.77 per share for the year.

First Solar lowered its full-year sales projection to a range of $3.4 billion to $3.6 billion, from a previous estimate of $3.6 billion to $3.8 billion. Analysts currently expect revenues of $3.63 billion for the year.

FSLR closed Thursday's trade at $50.31, down $1.09 or 2.13%, on the Nasdaq. The stock, however, gained $4.49 or 8.93% in after-hours trade.