First Solar Inc., the largest U.S. maker of solar-power modules, rose the most in more than eight months after third-quarter profit doubled and beat analyst expectations.
First Solar gained $28.32, or 24 percent, to a three-week high of $144.07 in Nasdaq Stock Market composite trading. The increase was the biggest since Feb. 13. The stock has dropped 46 percent this year.
The company yesterday forecast sales will nearly double next year. First Solar has lost more than half its value since reaching a record $311.14 on May 16 on concern an economic slowdown and credit crisis would crimp demand for renewable energy products.
“Investors were worried about demand and financing,'' said Adam Krop, an analyst at Ardour Capital Partners in New York, who has a “buy'' rating on the stock and owns none. “They've kind of assuaged those concerns.''
First Solar forecast sales of $1.22 billion to $1.24 billion this year and $2 billion to $2.1 billion next year, Jens Meyerhoff, chief financial officer, said on a conference call yesterday. The company has a backlog of orders for $6.3 billion worth of solar modules, he said.
The company also plans to expand its business in the U.S. as renewable energy subsidies decline in Europe.
Rooftop Installation
First Solar yesterday agreed to invest $25 million in closely held SolarCity Corp., which will buy and install 100 megawatts of First Solar modules on rooftops over five years. The initial contract with First Solar will be enough for about 25,000 homes, Foster City, California-based SolarCity said.
U.S. homeowners and businesses will get tax credits covering 30 percent of the cost of solar systems under legislation passed earlier this month.
First Solar's third-quarter net income climbed to $99.3 million, or $1.20 a share, from $46 million, or 58 cents, a year earlier, the Phoenix-based company said yesterday. Analysts expected $1 a share, the average of 16 estimates compiled by Bloomberg.
“People were already expecting them to have a good quarter, but this certainly didn't hurt,'' Krop said in an interview.
