First Photo voltaic jumps 12% after huge revenue bounce, gross sales improve by 70%

First Solar Inc.

Source: First Solar

First Solar’s shares rose more than 12% in expanded trading on Tuesday after the company announced that third-quarter sales were up 70% year over year.

The solar panel maker beat analysts’ estimates in both profit and margin, earning $ 1.45 per share on sales of $ 928 million. Analysts polled by FactSet expected the company to make 63 cents per share on sales of $ 676.5 million. In the same quarter last year, the company made 29 cents per share on sales of $ 546.8 million.

The company also restored its full-year guidance, which it previously withdrew on May 7 due to the uncertainty caused by the coronavirus pandemic. For 2020 First Solar expects a profit of between 2.6 and 2.9 billion US dollars.

Revenue increased 44.5% from the previous quarter, mainly due to international project sales and an increase in modules sold to third parties, the company said in a statement.

First Solar’s shares are up 47% this year.

“We assume that FSLR will benefit from the geographic dispersion of solar demand on the supply scale in the US,” said UBS on Tuesday before the report in a statement to clients. “FSLR has continued to build its backlog to ensure rare earnings visibility through 2021,” added the company, which has a buy rating on the stock. The company’s reputation came as it downgraded other players in the renewable energy space, including JinkoSolar, SolarEdge, Sunrun, and SunPower.

On the other hand, Credit Suisse downgraded First Solar to an underperformance rating on Monday before the earnings report due to valuation concerns.

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