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Why Is First Solar (FSLR) Up 8.8% Since Its Last Earnings Report?
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It has been about a month since the last earnings report for First Solar, Inc. (FSLR - Free Report) . Shares have added about 8.8% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is FSLR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
First Solar Q4 Loss Narrower Than Expected, Sales Lag
First Solar Inc. reported fourth-quarter 2017 adjusted loss of 25 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 32 cents by 21.9%. The loss figure also deteriorated from the prior-year quarter’s adjusted earnings of $1.24.
Excluding one-time adjustments of restructuring and asset impairment charges and the impact of U.S. tax reform, the company reported fourth-quarter GAAP loss per share of $4.14, compared with earnings of $1.95 in the prior quarter. Notably, higher tax expense associated with the U.S. tax reform enacted in December 2017 and the timing of system project sales led to the loss in the fourth quarter.
For 2017, the company reported adjusted earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.52 by 2.8%. Earnings however dropped 49.9% from the prior year’s $5.17.
Revenues
Revenues of $339.2 million in the quarter missed the Zacks Consensus Estimate of $433.8 million by 21.8%. Meanwhile, revenues rose 2.5% from the year-ago figure of $330.8 million.
In 2017, the company generated revenues worth $2.94 billion that missed the Zacks Consensus Estimate of $3.03 billion by 3%. However, revenues improved 1.3% from the year-ago figure of $2.90 billion.
Operational Highlights
Gross profit in the reported quarter was $62.1 million, up 690.9% from $7 million a year ago.
Total operating expenses contracted 88.3% to $97.1 million due to lower research and development, selling, general and administrative expenses and restructuring and asset impairments as well as research and development expenses.
Operating loss in the quarter totaled $35.1 million, compared with operating loss of $821.2 million in the year-ago quarter.
Financial Performance
First Solar had $2,268.5 million of cash and cash equivalents as of Dec 31, 2017, up from $1,347.2 million at the end of 2016.
Long-term debt was $380.5 million at the end of 2017, compared with $160.4 million at 2016-end.
2018 Guidance
First Solar raised its revenue guidance to the range of $2.45-$2.65 billion from the prior $2.3-$2.5 billion. Meanwhile, First Solar reiterated its operating cash flow guidance at the band of $100-$200 million. The company raised its panel shipment guidance from the earlier range of 2.7-2.7 gigawatts to 2.9-3.0 gigawatts.
The company however slashed the gross margin guidance to 21.5-22.5% from the earlier band of 22-23%. Meanwhile, the adjusted operating income view was raised to $130-$180 million from the previous $110-$170 million.
The company also lifted its full-year earnings. The company expects adjusted earnings per share in the range of $1.50-$1.90 compared with the prior guidance of $1.25-$1.75.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted by 75% due to these changes.
At this time, FSLR has a poor Growth Score of F, however its Momentum is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
FSLR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is First Solar (FSLR) Up 8.8% Since Its Last Earnings Report?
It has been about a month since the last earnings report for First Solar, Inc. (FSLR - Free Report) . Shares have added about 8.8% in that time frame.
Will the recent positive trend continue leading up to its next earnings release, or is FSLR due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
First Solar Q4 Loss Narrower Than Expected, Sales Lag
First Solar Inc. reported fourth-quarter 2017 adjusted loss of 25 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 32 cents by 21.9%. The loss figure also deteriorated from the prior-year quarter’s adjusted earnings of $1.24.
Excluding one-time adjustments of restructuring and asset impairment charges and the impact of U.S. tax reform, the company reported fourth-quarter GAAP loss per share of $4.14, compared with earnings of $1.95 in the prior quarter. Notably, higher tax expense associated with the U.S. tax reform enacted in December 2017 and the timing of system project sales led to the loss in the fourth quarter.
For 2017, the company reported adjusted earnings of $2.59 per share, beating the Zacks Consensus Estimate of $2.52 by 2.8%. Earnings however dropped 49.9% from the prior year’s $5.17.
Revenues
Revenues of $339.2 million in the quarter missed the Zacks Consensus Estimate of $433.8 million by 21.8%. Meanwhile, revenues rose 2.5% from the year-ago figure of $330.8 million.
In 2017, the company generated revenues worth $2.94 billion that missed the Zacks Consensus Estimate of $3.03 billion by 3%. However, revenues improved 1.3% from the year-ago figure of $2.90 billion.
Operational Highlights
Gross profit in the reported quarter was $62.1 million, up 690.9% from $7 million a year ago.
Total operating expenses contracted 88.3% to $97.1 million due to lower research and development, selling, general and administrative expenses and restructuring and asset impairments as well as research and development expenses.
Operating loss in the quarter totaled $35.1 million, compared with operating loss of $821.2 million in the year-ago quarter.
Financial Performance
First Solar had $2,268.5 million of cash and cash equivalents as of Dec 31, 2017, up from $1,347.2 million at the end of 2016.
Long-term debt was $380.5 million at the end of 2017, compared with $160.4 million at 2016-end.
2018 Guidance
First Solar raised its revenue guidance to the range of $2.45-$2.65 billion from the prior $2.3-$2.5 billion. Meanwhile, First Solar reiterated its operating cash flow guidance at the band of $100-$200 million. The company raised its panel shipment guidance from the earlier range of 2.7-2.7 gigawatts to 2.9-3.0 gigawatts.
The company however slashed the gross margin guidance to 21.5-22.5% from the earlier band of 22-23%. Meanwhile, the adjusted operating income view was raised to $130-$180 million from the previous $110-$170 million.
The company also lifted its full-year earnings. The company expects adjusted earnings per share in the range of $1.50-$1.90 compared with the prior guidance of $1.25-$1.75.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimate flatlined during the past month. There has been one revision higher for the current quarter compared to one lower. In the past month, the consensus estimate has shifted by 75% due to these changes.
First Solar, Inc. Price and Consensus
First Solar, Inc. Price and Consensus | First Solar, Inc. Quote
VGM Scores
At this time, FSLR has a poor Growth Score of F, however its Momentum is doing a lot better with an A. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
The company's stock is suitable solely for momentum based on our styles scores.
Outlook
FSLR has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.