LOS ANGELES, Feb 2 (Reuters) – U.S. solar equipment maker GT Solar International Inc (SOLR.O) reported better-than-expected third quarter earnings on Tuesday, as it saw higher demand from Asia, and its shares rose 8 percent.
Like other solar companies, GT Solar has been hit by a fall in prices for solar parts and the credit crisis, which has dried up financing for new projects.
The company's net income in the fiscal third quarter fell to $36.8 million, or 25 cents per share, from $43.1 million, or 30 cents per share, a year ago.
Wall Street analysts had expected on average for the company to earn 15 cents per share, according to Thomson Reuters I/B/E/S.
Revenue fell to $173.6 million from $205.2 million a year ago but topped analysts' average estimate of $145.4 million, according to Thomson Reuters I/B/E/S.
GT Solar's Chief Executive Tom Gutierrez said that its Asian customers are "bullish" on the long-term growth of photovoltaic solar systems that convert sunlight to electricity.
"As a result (they) are ramping capacity in advance of demand growth," Gutierrez said on a conference call.
Yet GT Solar is uncertain whether the current increase in order rates will continue, Gutierrez said.
The company expects to see $400 million to $600 million in revenue and to earn between 30 cents and 60 cents per share for fiscal year 2011.
For the 2010 fiscal year, GT Solar narrowed its forecast for revenue to $500 million to $550 million from its previous target of $450 million to $550 million. It expects to earn 52 cents to 60 cents per share during the period.
Investors are looking for the company's backlog of orders for solar equipment to grow, which would indicate that the solar industry is increasing capacity, said Raymond James analyst Pavel Molchanov.
"We've seen a pick-up in orders which was encouraging," Molchanov said.
Shares of the Merrimack, New Hampshire-based company were up 8 percent at $6.50 in extended trade. The shares closed up 3.8 percent at $6 in regular trade on Tuesday on the Nasdaq.
