Analyst Cuts Solar Sector Before First Solar Earnings (FSLR, SPWR, STP, TSL)

First Solar, Inc. (NASDAQ: FSLR) is set to report earnings on Tuesday.  After one analyst downgrade late last week, now we have another First Solar analyst downgrade that is part of a sector call.  Cowen & Co. downgraded First Solar to Neutral from Outperform. There were cuts in at least three other solar stocks:

SunPower Corporation (NASDAQ: SPWR) Cut to Neutral from Outperform.

Suntech Power Holdings (NYSE: STP) Cut to Neutral from Outperform.

Trina Solar Limited (NYSE: TSL) Cut to Neutral from Outperform.

Here is the preview for First Solar, Inc. (NASDAQ: FSLR) earnings due on Tuesday afternoon: Thomson Reuters has estimates of $1.55 EPS and $782.22 million in revenue; next quarter estimates are $0.77 EPS and $789.3 million in sales.  For 2012, estimates are for earnings top drop on sales growth of 31% to $3.78 billion.  This just represents the climate for an expectation that margins will compress and compress and shares are down about 75% or more from the 52-week high.

JON C. OGG