Solar Stocks Tumble as First Solar Trims Earnings & Sales Outlook (TAN, FSLR, SPWR, STP, CSIQ, LDK)

Published on Wednesday, 14 December 2011 14:51 Written by Danny Miller

  New York, December 14th (TradersHuddle.com) – Shares of solar companies are showing heavy selling on Wednesday following the world's largest maker of thin-film solar panels reduced its earnings target for the FY2011 and also estimated weak results for the FY2012. Claymore/MAC Global Solar Index (ETF)(NYSE:TAN), which largely tracks the solar industry, slumped over 5% and made a new 52-week low of $2.63.

First Solar (NASDAQ:FSLR) now projects to earn $5.75 to $6.00 on revenue of $2.8 billion to $2.9 billion in FY2011, compared to its earlier forecast of earnings of $6.50 to $7.50 on revenue of $3.0 billion to $3.3 billion in October.

The company also trimmed its earnings forecast to $3.75 to $4.25 on net sales of $3.7 to $4.0 billion for FY2012, well below analysts’ estimates of $7.40 per share on revenue of s $4.01 billion.

The company has been facing immense margin pressure due to sharp drop in the price of solar panels this year.

Shares of FSLR tumbled $8.74 or 20.53% to $33.83 after hitting new 52-week low of $33.08.

Shares of other solar related companies also came under pressure with SunPower  (NASDAQ:SPWR) plunged 12.68% to $5.51 after hitting a new 52-week low of $5.50, Suntech Power  (ADR)(NYSE:STP) slid 6.25%, Canadian Solar  (NASDAQ:CSIQ) lost 7% to $2.27 and LDK Solar   (ADR)(NYSE:LDK) declined 3%.