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First Solar goes residential, profit jumps
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First Solar, the Tempe-based producer of relatively low-cost solar panels, said Wednesday its profit more than doubled in the third quarter as sales of its thin-film photovoltaic solar cells continued to heat up.
The results topped analysts’ expectations, and the company’s share soared more than 15 percent to $133.50 in after hours trading Wednesday. Still, the stock was far below its 52-week high of $317 achieved in mid-May.
Net income in the quarter ended Sept. 30 rose to $99.3 million, or $1.20 a share, from $46 million, or 58 cents share, in the third quarter last year. Revenue also more than doubled to $348.7 million from $159 million a year ago.
Analysts surveyed by Thomson Reuters on average expected earnings of just $1.01 a share on revenue of $339.3 million.
Separately, the company announced Wednesday it will enter the U.S. residential market by signing a five-year agreement with SolarCity Corp., a Foster City, Calif.-based solar equipment installer that offers financing options to homeowners allowing them to add solar panels without large up-front costs.
Under the pact, First Solar will supply 100 megawatts to thin-film modules to SolarCity and will make a $25 million equity investment in the California company.
SolarCity serves Arizona along with California and Oregon and plans to expand to other states.
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