First Solar Profit Jumps 90%; Boosts Outlook

(RTTNews) - U.S. solar panel maker First Solar, Inc. (FSLR) said Tuesday after the markets closed that its first quarter profit jumped 90% from last year, as sales surged and operating expenses fell.

The company's quarterly earnings per share also came in well above analysts' expectations as did its quarterly sales. Based on strong first quarter performance, the company raised its full year earnings outlook.

"In the first quarter we demonstrated significant progress towards achieving the financial and operational targets we outlined at our recent Analyst Day," said First Solar CEO Jim Hughes. "We delivered strong earnings in the first quarter and are increasing our financial guidance for the year based on these results. We have also made significant progress in new bookings and continue to execute on our technology roadmap."

First Solar shares are currently gaining 3.26% in after hours trading after closing the day's regular trading session at $67.45, down 97 cents or 1.42%. The shares trade in a 52-week range of $35.59 to $74.84.

First Solar has recently turned its focus on building solar farms on its own rather than selling solar panels to other companies. The company is also venturing into new regions, including Japan.

For the first quarter ended March 31, 2014, the Tempe, Arizona-based company reported net income of $112.0 million or $1.10 per share, compared to $59.1 million or $0.66 per share for the year-ago quarter.

On average, 18 analysts expected the company to earn $0.56 per share for the first quarter. Analysts' estimates typically exclude special items.

Net sales for the first quarter rose 26% to $950.16 million from $755.21 million in the same quarter last year. Fifteen analysts had a consensus revenue estimate of $837.95 million for the first quarter.

First quarter net sales increased 24% sequentially, mainly due to achieving revenue recognition on the company's Campo Verde project.

The company raised its full year 2014 earnings guidance to a range of $2.40 to $2.80 per share from its prior guidance of $2.20 to $2.60 per share. Analysts currently expect the company to earn $2.49 per share for the full year 2014.