We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
First Solar (FSLR) Beats on Q3 Earnings, Updates Outlook
Read MoreHide Full Article
First Solar Inc. (FSLR - Free Report) reported third-quarter 2016 earnings of $1.22 a share, beating the Zacks Consensus Estimate of 69 cents by a wide 76.8%. The reported number, however, declined 64.2% from the prior-year figure of $3.41.
Revenues
First Solar’s revenues of $688 million in the quarter missed the Zacks Consensus Estimate of $967 million by 28.8%. Revenues also declined 45.9% from the year-ago figure of $1,271.2 million. The decline is primarily attributable to the completion of multiple systems projects during the quarter, partially offset by higher module-only sales.
Gross profit in the reported quarter was $186.3 million, down from $484.4 million a year ago.
Total operating expenses increased 12.8% to $97.6 million, largely due to higher research and development expenses, selling, general and administrative expenses, and restructuring and asset impairment costs.
Operating income was $88.7 million, down from $397.8 million in the year-ago quarter.
First Solar had $1,414.2 million of cash and cash equivalents as of Sep 30, 2016, down from $1,126.8 million at 2015 end.
Long-term debt was $161.1 million at the end of the third quarter, compared with $251.3 million as of Dec 31, 2015.
2016 Guidance
First Solar has lowered its revenue guidance to the band of $2.8–$2.9 billion from $3.8–$4 billion projected earlier. However, it has raised the gross margin guidance to the range of 25.5–26% (18.5–19% guided earlier). The low end of the operating income guidance was raised to $340–$370 million ($310–$370 million projected previously). Meanwhile, the company has trimmed its operating cash flow guidance to reflect cash outflow of $100–$0 million band, compared to $500–$650 million predicted earlier.
The company lowered its panel shipment projection to the 2.8−2.9 GW band from 2.9−3.0 GW projected earlier.
Full-year earnings are now expected in the band of $4.30−$4.50 per share ($4.20−$4.50 estimated previously).
Quarterly Results at 8point3 Energy
8point3 Energy Partners LP , a limited partnership formed by First Solar and SunPower Corp. (SPWR - Free Report) , reported earnings of 38 cents per share in the third quarter of fiscal 2016 (ended Aug 31, 2016), missing the Zacks Consensus Estimate of 42 cents by 9.5%. The partnership reported net income of $15.9 million in the quarter, compared with $1.3 million in the year-ago period.
Upcoming Peer Releases
SunPower is slated to report third-quarter 2016 earnings on Nov 9.
ReneSola Ltd. (SOL - Free Report) is expected to release third-quarter results on Nov 15.
Zacks Rank
First Solar presently carries a Zacks Rank #3 (Hold).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
First Solar (FSLR) Beats on Q3 Earnings, Updates Outlook
First Solar Inc. (FSLR - Free Report) reported third-quarter 2016 earnings of $1.22 a share, beating the Zacks Consensus Estimate of 69 cents by a wide 76.8%. The reported number, however, declined 64.2% from the prior-year figure of $3.41.
Revenues
First Solar’s revenues of $688 million in the quarter missed the Zacks Consensus Estimate of $967 million by 28.8%. Revenues also declined 45.9% from the year-ago figure of $1,271.2 million. The decline is primarily attributable to the completion of multiple systems projects during the quarter, partially offset by higher module-only sales.
Operational Highlights
Gross profit in the reported quarter was $186.3 million, down from $484.4 million a year ago.
Total operating expenses increased 12.8% to $97.6 million, largely due to higher research and development expenses, selling, general and administrative expenses, and restructuring and asset impairment costs.
Operating income was $88.7 million, down from $397.8 million in the year-ago quarter.
FIRST SOLAR INC Price, Consensus and EPS Surprise
FIRST SOLAR INC Price, Consensus and EPS Surprise | FIRST SOLAR INC Quote
Financial Performance
First Solar had $1,414.2 million of cash and cash equivalents as of Sep 30, 2016, down from $1,126.8 million at 2015 end.
Long-term debt was $161.1 million at the end of the third quarter, compared with $251.3 million as of Dec 31, 2015.
2016 Guidance
First Solar has lowered its revenue guidance to the band of $2.8–$2.9 billion from $3.8–$4 billion projected earlier. However, it has raised the gross margin guidance to the range of 25.5–26% (18.5–19% guided earlier). The low end of the operating income guidance was raised to $340–$370 million ($310–$370 million projected previously). Meanwhile, the company has trimmed its operating cash flow guidance to reflect cash outflow of $100–$0 million band, compared to $500–$650 million predicted earlier.
The company lowered its panel shipment projection to the 2.8−2.9 GW band from 2.9−3.0 GW projected earlier.
Full-year earnings are now expected in the band of $4.30−$4.50 per share ($4.20−$4.50 estimated previously).
Quarterly Results at 8point3 Energy
8point3 Energy Partners LP , a limited partnership formed by First Solar and SunPower Corp. (SPWR - Free Report) , reported earnings of 38 cents per share in the third quarter of fiscal 2016 (ended Aug 31, 2016), missing the Zacks Consensus Estimate of 42 cents by 9.5%. The partnership reported net income of $15.9 million in the quarter, compared with $1.3 million in the year-ago period.
Upcoming Peer Releases
SunPower is slated to report third-quarter 2016 earnings on Nov 9.
ReneSola Ltd. (SOL - Free Report) is expected to release third-quarter results on Nov 15.
Zacks Rank
First Solar presently carries a Zacks Rank #3 (Hold).
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>