SunPower Corp. (NASDAQ: SPWR) and First Solar Inc. (NASDAQ: FSLR) each reported their earnings after the markets closed Thursday, and now analysts are beginning to weigh in on these solar companies. The initial response to earnings may have been a bit harsh in after-hours trading, but that response appears to have evened out for the most part.

For the quarter, SunPower reported adjusted diluted earnings per share (EPS) of $0.13 on adjusted revenue of $430.6 million. In the same period a year ago, SunPower reported EPS of $0.49 on revenue of $683.7 million. First-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.09 and $452.56 million in revenue.

The solar panel maker said it would withhold guidance until it can finalize the estimates regarding the impact of the proposed yieldco on the company’s expected financial performance.

Revenues fell by more than a third compared with the year ago quarter, and by nearly two-thirds sequentially. Revenues fell in every division: residential, commercial and power plant. The company is likely holding on to assets rather than selling them as it has done in the past. Some will be passed along to the yieldco at the time that entity goes public and others will be sold eventually. The hits to revenue now should be made up later.

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Credit Suisse had an Outperform rating for SunPower with a price target of $35. The firm detailed the rating in its call:

SunPower released first quarter earnings that were in-line with our forecasts, provided increased disclosure into the business through a new reporting structure as anticipated, provided reassuring updates on Fab4 capacity expansion progress, and highlighted encouraging growth and margin expansion opportunities in the distributed generation business (residential energy systems installations grew 91% year over year; a new set of offerings for commercial will be launched this year). At the same time, the company continues to execute on the value-maximization efforts utilizing the yield vehicle as assets are held on the balance sheet ahead of the anticipated mid-year launch.

Friday morning, shares of SunPower were up 0.7% at $32.42, in a 52-week trading range of $22.75 to $42.07. The stock has a consensus analyst price target of $41.64. In after-hours trading on Thursday, SunPower shares dropped as low as $30.00, a 6.6% decrease from Thursday’s close of $32.13.

First Solar posted a diluted net loss per share of $0.62 and $469.21 million in revenues. In the same period a year ago, First Solar reported EPS of $1.10 on revenue of $950.16 million. Consensus estimates called for a net loss of $0.18 and $597.1 million in revenue.

The company said it expects second-quarter sales of $750 million to $800 million and EPS of $0.45 to $0.55. Analysts are looking for second-quarter EPS of $0.40 on sales of $779.65 million, as well as full-year EPS of $3.14 and revenues of $3.46 billion.

First Solar announced a strategic alliance with Caterpillar Inc. (NYSE: CAT) to develop an integrated solar PV solution for microgrid applications. First Solar will design and manufacture a pre-engineered turnkey package for use in remote microgrid applications, such as small communities and mine sites. The package will feature Cat-branded solar panels manufactured by First Solar and will include a balance of system components.

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Credit Suisse had a Neutral rating for First Solar with a price target of $70. According to the brokerage firm:

Revenue miss – timing related, not structural: First Solar experienced a confluence of issues outside their control for three projects, including permitting delays, environmental delays (150 MW Tenaska plant in California experienced a delay owing to concerns over the flat-tailed horned lizard), and module shipment delays owing to the west coast port shut-down. The 32 MW Lost Hills project was partially sold in the second quarter (51% stake sold to Southern Company).

Credit Suisse also noted that:

During the quarter the company experienced three project delays (issues cited of environmental permitting and port-shutdown) resulting in a miss of $131 million relative to guidance of $550 million to $650 million, and pushed gross margins down to 8.3% given under absorption and higher mix of modules vs 30.6% of margins in the fourth quarter (due to sale of a 150 MW project).

First Solar shares were down 1.4% at $58.85. The consensus price target is $64.62, and the 52-week trading range is $39.18 to $73.78. In after-hours trading Thursday, First Solar shares hit a low of $54, a whopping dip of 9.5% from Thursday’s close of $59.67.

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