After The Bell: Starbucks, First Solar Earnings on Tap

International specialty coffee chain  Starbucks  (SBUX) is due to report second-quarter earnings after the bell Thursday. Wall Street analysts expect net income of $0.34 per share versus $0.27 in the year-ago quarter. The Street will look for growth from new product launches and a strong showing in international markets.

Morningstar analyst R.J. Hottovy believes that given the substantial top-line headwinds of the past two years, Starbucks' rapid profitability turnaround has been nothing short of remarkable. Morningstar expects international markets will be the firm's primary growth vehicle going forward.

 First Solar  (FSLR) is also set to report second-quarter earnings after the stock markets close Thursday. Wall Street analysts expect earnings of $0.92 per share down from $1.84 in the year-ago quarter.

The solar-energy solutions provider has been reporting somewhat volatile earnings recently, but Morningstar analyst Stephen Simko believes that with the company's low debt levels and strong balance sheet, First Solar will not have any issues financing its operations or large-scale projects. However, the company faces a number of strategic operational challenges that it must reconcile in the face of global-installation growth that is certain to either dramatically slow or even shrink during 2011-12.

According to Simko, given all of the manufacturing capacity that companies are currently bringing on line, more aggressive pricing declines are all but inevitable. Government subsidies will remain the primary driver of demand during the next decade. In order for the industry to grow much beyond the 18 GW installed in 2010, the expansion of the solar markets (through subsidies) in the United States, China, and India is required.