First Solar Q2 net soars past view, shares rise

By Nichola Groom

LOS ANGELES (Reuters) - Solar cell maker First Solar Inc (FSLR.O) reported a 57 percent increase in quarterly profit on Wednesday, blowing past Wall Street estimates as higher-than-expected production from a new plant in Malaysia helped it meet surging demand.

The company also forecast 2008 revenue above analysts' estimates, and shares rose 6.5 percent in extended trade.

"Despite expectations being so high, they completely outdelivered again," Pacific Crest analyst Mark Bachman said. Bachman has an "outperform" rating on First Solar shares and does not own the stock.

Second-quarter net income increased to $69.7 million, or 85 cents per share, exceeding analysts' average estimate of 57 cents a share, according to Reuters Estimates.

In the same period last year, First Solar earned $44.4 million, or 58 cents per share.

First Solar has been the darling of the clean technology sector since it went public in 2006. The stock has gained nearly 7 percent this year, while most other solar stocks have logged sharp declines.

The Phoenix company's thin-film photovoltaic solar cells, which turn sunlight into electricity, are cheaper to produce than the silicon-based cells that dominate the market.

Revenue totaled $267 million, nearly three-and-a-half times revenue of $77.2 million in the second quarter of last year. Analysts, on average, had expected $217.3 million.