Yesterday, solar firm First Solar (NASDAQ: FSLR) announced that its fourth-quarter profit more-than doubled in the face of declining demand for its products. Arizona-based FSLR raked in $1.61 per share in the fourth quarter, up from 77 cents per share a year earlier. The Street expected earnings of $1.30 per share.Fourth-quarter sales increased to $433.7 million, far better than the expected $410.4 million. Full-year sales totaled $348.3 million, with earnings checking in at $4.24 per share.
FSLR's announcement after the closing bell Tuesday was followed by after-hours drop of more than 12%. The decline may have been sparked by FSLR's CEO Michael Ahearn's comments who noted, "we consider a small number of our customers under financial stress," adding "Bank lending continues to be slow in almost all markets."
In April, FSLR was leading the charge of solar stocks, hitting $300. However, the recent slide in crude prices along with the economic downturn have more than halved the stock's price. As the shares battle resistance from the $150 level, their 10- and 20-month moving averages are in position to form a bearish cross. Such a technical formation often indicates continued struggles for a stock. Watch for this scenario to play out for FSLR.
FSLR shares are slumping over 14% in pre-market trade.
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