The posting of First Solar’s first quarter earnings were shocking compared to Wall Street’s estimates on Tuesday May 3, 2011. First Solar is one of the world’s largest solar energy companies which received an estimated net income of $116 million for the first quarter this year, 2011: this number represents a 33% drop from the first quarter of 2010 which would have brought in about $154 million. Net sales, however came in at $567 mil this quarter which was very similar to last year’s net sales and was greater than estimates of about $544 mil. First Solar mentioned that lower sales this year led to lower selling prices which inevitably lowered their net income this quarter. This statement very well explains the law of supply in their situation of decreased sales. With these number not even in favor of the company, CEO Rob Gillette of First Solar felt there was good hope for rising demand in the rest of 2011. With this positive attitude, it is estimated that net sales by the end of 2011 will approximately hit $3.7 to $3.8 billion. Hoping that net sales will rise to these numbers by the end of this year’s fourth quarter, First Solar will have to find the key to greater demand. In this economy though, with its high gas prices and go green attitude, this should hopefully prove easy to accomplish.
Written by: Holly Williams