First Solar Rises After Earnings. Management Sees Hope in Darkening Solar Industry.

First Solar CEO Mark Widmar said recent trade and policy developments have strengthened the company’s position in the solar-manufacturing industry. (Robert Nickelsberg/Getty Images)

First Solar shares jumped 5% in after-hours trading shortly after the company reported better-than-expected second-quarter earnings and offered a relatively sunny outlook at a tough time for renewable energy.

The nation’s largest solar manufacturer expects to be able to weather a policy environment that has turned against solar power.

“In our view, the recent policy and trade developments have, on balance, strengthened First Solar’s relative position in the solar manufacturing industry,” said CEO Mark Widmar.

First Solar benefits from some of the tariffs the Trump administration is placing on foreign solar providers, as well as from rules in the Republican tax bill punishing companies that use Chinese solar products. That said, the company could see a slump in demand for its products because the same bill cuts subsidies for solar power.

First Solar posted $3.19 of earnings per share, above expectations for $2.66.

The company’s forecasts for its full-year results were a mixed bag. Management slightly increased its sales guidance, but also raised its expectations for operating expenses. The midpoint of its range of forecasts for operating earnings is now slightly lower. And management is now predicting earnings per share of $13.50 to $16.50, compared with a forecast for $12.50 to $17.50.

First Solar had said on its first-quarter earnings call that some of the Trump tariffs would hurt its factories in places like India, and potentially force the company to idle overseas operations.

Write to Avi Salzman at avi.salzman@barrons.com