First Solar Q2 Results Fall Sequentially; Miss Street Views

shares were tumbling in the extended session after it reported a sharp sequential decline in second-quarter sales and earnings sequentially. The solar power equipment company missed Wall Street's expectations by a wide margin but reiterated its 2014 earnings outlook. Chief Executive James Hughes explained the sequential sales and income drop by noting a strong first quarter that included recognition of the company's Campo Verde project as well as deferred sales in the recent period. The company also disclosed it obtained an efficiency rate of 21 percent for its solar cells, which it called a milestone. "While project delays in Q2 resulted in deferring some earnings to later in the year we remain on track to our financial targets," Hughes said in a statement. The company forecast 2014 earnings of $2.40 to $2.80 a share, in line with Street views. For the recent second quarter, First Solar posted profits of $4.5 million or $0.04 cents a share, compared with $33.6 million or $0.37 cents a share in the year-earlier period. Sales grew to $544.4 from $519.7 million last year. Analysts had forecast earnings of $0.37 a share on sales of $795.9 million. First quarter earnings were $1.10 a share on sales of $950 million. After hours, First Solar changed hands recently down nearly five percent to $6.55 a share.