SPWR -9% ..Solar energy stocks are sinking after one of the companies in the sector, First Solar (FSLR), reported significantly weaker than expected results. WHAT'S NEW: First Solar, which develops solar plants and sells solar modules, said its results were negative affected by a delay of the sale of a number of solar projects until later this year. The company lowered its 2013 profit guidance, and blamed the reduction on several factors, including higher operating costs, delays of two projects until 2014, and the company's decision to purchase intellectual property from GE (GE). First Solar reported second quarter EPS of 39c, compared with analysts' consensus estimate of 52c. The company's revenue was $520M, versus the consensus estimate of $721M.
ANALYST REACTION: In a note to investors earlier today, Citigroup analyst Shahriar Pourreza wrote that the company's weaker than expected results were primarily caused by timing issues. Moreover, First Solar's fundamentals remain intact, and its guidance should be maintained even if some of its project sales are delayed until the fourth quarter, added the analyst. He kept a $50 price target and Buy rating on the shares. TODAY'S PRICE ACTION: In early trading, SunPower tumbled 9.7% to $21.65, Canadian Solar (CSIQ) slid 8% to $14.15, SolarCity (SCTY) dropped 5.5% to $41.45, and First Solar tumbled 12% to $41.20. :theflyonthewall.com
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