Solar Stocks Fall on First Solar's (FSLR) 2009 Outlook

First Solar, Inc. (NASDAQ:FSLR) doubled 2008 profits but their 2009 outlook is bringing down shares 18% this morning. The company said "The short-term outlook for the solar industry has never looked more difficult."

First Solar expects revenue for 2009 to be about $200 million less than previous estimates, and it looks like the company has extended more generous payment terms to customers.  CEO Michael Ahearn told investors on the call that 10%-15% of its 2009 orders were at risk of customer default. He also said that the company had stretched out payment terms for its customers, agreed to cut prices in exchange for volume orders, and was taking the extraordinary step of taking equity stakes in some projects which otherwise were having trouble getting financed.

It doesn't matter how good your previous quarter was these days, its all about the guidance or lack of one that can take a company down in a heartbeat.  Here's how Evergreen and SunPower are trading on the First Solar News:

President Obama did repeat his pledge that the United States would invest $15 billion annually to develop technologies such as wind and solar, next-wave biofuels, "clean coal" and efficient cars.

The administration has vowed to double renewable energy supply over three years, boosted from billions of dollars in the recently enacted stimulus measure, and greatly expand transmission to carry renewable sources to populated areas.

However, these big changes and money won't start pouring into Solar Companies until 2012.

Here is Bloomberg's coverage on First Solar's Earnings Call this morning: