Solar industry stocks are tanking today. Yesterday, First Solar issued an ugly outlook.
First Solar was down as much as 16 per cent today.
The Arizona-based company said it now expects sales of $650 million to $750 million for the first quarter, which is below the $822 million consensus forecast, according to Marketwatch. Management also put their cash flow from operations forecast range at breakeven to up to $100 million, compared with analysts’ expectations of $214 million.
Meanwhile, Changzhou-based Trina Solar posted a fourth-quarter loss of $1.23, nearly $0.50 worse than analysts’ expectations, Marketwatch said. The company also had gross margins of just 4.4% in 2012 compared with 16.2% in 2011, which it attributed to oversupply and aggressive pricing.