Here’s Why Solar Stocks are Getting Drop Kicked Now

First Solar (NASDAQ:FSLR) shares were halted after the company savagely cut its guidance for fiscal years 2011 and 2012.

Citing bad weather and other deteriorating factors, First Solar expects to deliver earnings per share of $5.75 – $6.00 on revenues of $2.8B – 2.9B versus the previous forecast of $6.50-$7.50 on sales of $3.0B – $3.3B.

For fiscal 2012 the EPS is expected to be about $3.75-$4.25 on sales of $3.7B-$4B. That’s a far cry from the consensus estimate of $7.42 on $4.09B.

This development has clouded the general outlook for solar stocks (NYSE:TAN) considering First Solar is a bell-wether for the sector with strong branding and higher margins. It remains to be seen how many manufacturers survive the current industry turmoil with supplies of solar modules much higher than demand.

Here’s how top solar stocks are trading on the news:

First Solar, Inc. (NASDAQ:FSLR): FSLR shares recently traded at $33.64, down $8.93, or 20.98%. They have traded in a 52-week range of $40.05 to $175.45. Volume today was 9,380,949 shares versus a 3-month average volume of 3,996,030 shares. The company’s trailing P/E is 5.52, while trailing earnings are $6.09 per share. Get the most recent company news and stock data here >>

Suntech Power Holdings Co. Ltd. (NYSE:STP): STP shares recently traded at $2.24, down $0.16, or 6.67%. They have traded in a 52-week range of $1.70 to $10.83. Volume today was 1,247,372 shares versus a 3-month average volume of 4,430,050 shares. The company’s trailing P/E is 29.09, while trailing earnings are $0.08 per share. Get the most recent company news and stock data here >>

Yingli Green Energy Holding Co. Ltd. (NYSE:YGE): YGE shares recently traded at $3.57, down $0.31, or 7.99%. They have traded in a 52-week range of $2.75 to $13.59. Volume today was 1,436,756 shares versus a 3-month average volume of 4,063,000 shares. The company’s trailing P/E is 3.35, while trailing earnings are $1.07 per share. Get the most recent company news and stock data here >>

LDK Solar Co., Ltd. (NYSE:LDK): LDK shares recently traded at $4.14, down $0.22, or 5.05%. They have traded in a 52-week range of $2.55 to $14.97. Volume today was 762,795 shares versus a 3-month average volume of 2,280,960 shares. The company’s trailing P/E is 6.16, while trailing earnings are $0.67 per share. Get the most recent company news and stock data here >>