* Q3 adj shr $0.39 vs est of $0.37
* Co raises FY earnings view
* Margins may have peaked - analyst
* Shares down 20 pct
By Arup Roychoudhury
BANGALORE, Nov 12 Solar company STR Holdings
Inc STRI.N reported market-beating adjusted profit for the
third quarter and raised its full-year earnings forecast.
Shares of the company, however, fell 20 percent amid
investors' concerns that margins have peaked and would weaken
in the coming quarters.
"STR has been pretty clear that their margins will go down
over time but at this point there may be investors realizing
that second quarter is as high as it can get and they are going
downhill from here in 2011," Battle Road Research analyst David
Enfield, Connecticut-based STR did not give quarterly
Solar firms' sales have surged this year on strong demand,
but declining subsidies in Germany and other European countries
threaten to compress profit margins as the companies cut prices
for their products.
Earlier in the week, China's JA Solar Holdings Co (JASO.O)
and Solarfun Power Holdings Co Ltd SOLF.O posted solid
results and signaled strong demand, but their shares fell amid
margin worries. [ID:nSGE6A80ON]
STR's July-September adjusted profit was $16.6 million, or
39 cents a share, compared with analysts' estimates of 37 cents
a share, according to Thomson Reuters I/B/E/S.
For 2010, the company forecast earnings of $1.47-$1.51 a
share, up from $1.35-$1.45 a share earlier. [ID:ASA012CI]
Shares of STR, which have more than doubled since the
company went public in November last year, were down 15 percent
at $20.80 in midday trade Friday on the New York Stock
Exchange. They touched a low of $19.51 earlier.
(Reporting by Arup Roychoudhury in Bangalore; Editing by