Solar power product maker STR Holdings Inc. withdrew its full-year earnings guidance for 2011 on Monday, saying demand for solar materials hasn't recovered as it expected.
The company also trimmed its earnings estimate for the third quarter.
STR, which is based in Enfield, Conn., said there is a "lack of clarity" regarding global demand for its products, which include films used on solar panels, in the fourth quarter. The company said it had been anticipating that a restoration in project financing in Europe, low solar panel inventory levels and other factors would increase demand for its solar energy products.
"We were not alone in this view. However, as has been widely reported, demand for solar modules has not yet recovered," said Barry Morris, STR's chief financial officer.
In August, STR had said it expected to earn $1.05 to $1.15 per share on revenue of $261 million to $275 million for the year. Analysts are expecting earnings of $1.06 per share on revenue of $300.8 million.
The company also on Monday said that it expects third-quarter earnings to be one to two cents lower than its previous guidance of 12 to 16 cents per share. The company said it still expects revenue between $51 million and $57 million. Analysts polled by FactSet had been anticipating earnings of 15 cents per share on revenue of $59.4 million.
The company expects to announce its third-quarter results and update its 2011 guidance on or around Nov. 2.
STR's shares fell $1.21, or 14 percent, to $7.47 in after-hours trading. The stock had closed down 35 cents at $8.68 on Monday. It has dropped 57 percent this year.