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First Solar (FSLR) Beats on Q3 Earnings, Lowers '18 Outlook
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First Solar Inc. (FSLR - Free Report) reported third-quarter 2018 earnings of 54 cents per share, beating the Zacks Consensus Estimate of 45 cents by 20%. The reported number, however, decreased 72.3% from the prior-year figure of $1.95.
Revenues
First Solar’s revenues of $676 million in the quarter missed the Zacks Consensus Estimate of $684 million by 1.1%. Moreover, revenues deteriorated 37.8% from the year-ago figure of $1,087 million.
Operational Highlights
Gross profit in the reported quarter was $129.1 million, down 55.8% from $291.8 million a year ago.
Total operating expenses contracted 16.7% to $70.7 million due to lower selling, general and administrative expenses, and the mitigation of restructuring and asset impairments expenses.
Operating income during the quarter was $58.5 million, down approximately 71.7% from $207 million in the year-ago quarter.
First Solar, Inc. Price, Consensus and EPS Surprise
First Solar had $1,434.9 million of cash and cash equivalents as of Sep 30, 2018, down from $2,268.5 million at the end of 2017.
Long-term debt was $463.5 million at the end of the quarter compared with $380.5 million as of Dec 31, 2017.
2018 Guidance
First Solar lowered its 2018 revenue guidance to the range of $2.3-$2.4 billion from $2.5-$2.6 billion. Meanwhile, the company currently expects operating cash outflow of $100 million against operating cash inflow expected earlier in the range of $100-$200 million. The company also reduced its panel shipment expectation to the range of 2.6-2.7 gigawatts (GW) from the prior 2.8-2.9 GW.
First Solar also lowered the gross margin guidance to 18.5-19.5% from the earlier band of 20.5-21.5%. Furthermore, the company slashed the adjusted operating income guidance to $90-$110 million from the previous guidance of $120-$160 million.
First Solar lowered its full-year earnings guidance as well. Currently the company expects to generate adjusted earnings in the range of $1.40-$1.60 per share, compared with the prior guidance of $1.50-$1.90.
Canadian Solar (CSIQ - Free Report) is expected to release third-quarter 2018 results on Nov 15. The company carries a Zacks Rank #3.
Enphase Energy (ENPH - Free Report) is expected to release third-quarter 2018 results on Nov 6. The company carries a Zacks Rank #3.
SunPower Corporation (SPWR - Free Report) is expected to release third-quarter 2018 results on Oct 30. The company carries a Zacks Rank #2 (Buy).
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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First Solar (FSLR) Beats on Q3 Earnings, Lowers '18 Outlook
First Solar Inc. (FSLR - Free Report) reported third-quarter 2018 earnings of 54 cents per share, beating the Zacks Consensus Estimate of 45 cents by 20%. The reported number, however, decreased 72.3% from the prior-year figure of $1.95.
Revenues
First Solar’s revenues of $676 million in the quarter missed the Zacks Consensus Estimate of $684 million by 1.1%. Moreover, revenues deteriorated 37.8% from the year-ago figure of $1,087 million.
Operational Highlights
Gross profit in the reported quarter was $129.1 million, down 55.8% from $291.8 million a year ago.
Total operating expenses contracted 16.7% to $70.7 million due to lower selling, general and administrative expenses, and the mitigation of restructuring and asset impairments expenses.
Operating income during the quarter was $58.5 million, down approximately 71.7% from $207 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 $1,434.9 million of cash and cash equivalents as of Sep 30, 2018, down from $2,268.5 million at the end of 2017.
Long-term debt was $463.5 million at the end of the quarter compared with $380.5 million as of Dec 31, 2017.
2018 Guidance
First Solar lowered its 2018 revenue guidance to the range of $2.3-$2.4 billion from $2.5-$2.6 billion. Meanwhile, the company currently expects operating cash outflow of $100 million against operating cash inflow expected earlier in the range of $100-$200 million. The company also reduced its panel shipment expectation to the range of 2.6-2.7 gigawatts (GW) from the prior 2.8-2.9 GW.
First Solar also lowered the gross margin guidance to 18.5-19.5% from the earlier band of 20.5-21.5%. Furthermore, the company slashed the adjusted operating income guidance to $90-$110 million from the previous guidance of $120-$160 million.
First Solar lowered its full-year earnings guidance as well. Currently the company expects to generate adjusted earnings in the range of $1.40-$1.60 per share, compared with the prior guidance of $1.50-$1.90.
Zacks Rank
First Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Solar Releases
Canadian Solar (CSIQ - Free Report) is expected to release third-quarter 2018 results on Nov 15. The company carries a Zacks Rank #3.
Enphase Energy (ENPH - Free Report) is expected to release third-quarter 2018 results on Nov 6. The company carries a Zacks Rank #3.
SunPower Corporation (SPWR - Free Report) is expected to release third-quarter 2018 results on Oct 30. The company carries a Zacks Rank #2 (Buy).
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>