First Solar Inc. (FSLR - Free Report) reported fourth-quarter 2016 earnings of $1.24 a share, beating the Zacks Consensus Estimate of 97 cents by 27.8%. The reported number, however, declined 22.5% from the prior-year figure of $1.60.
For 2016, the company reported a loss of $3.48 per share. The Zacks Consensus Estimate for the year was earnings of $4.71. In the year-ago period, First Solar reported earnings of $5.37 per share.
Revenues
First Solar’s revenues of $480.4 million in the quarter surpassed the Zacks Consensus Estimate of $392 million by 22.6%. Revenues also declined 49% from the year-ago figure of $942.3 million. The decline is primarily attributable to the completion of multiple systems projects during the quarter, partially offset by higher module-only sales.
Full-year revenues came in at $2.95 billion, beating the Zacks Consensus Estimate of $2.86 billion by 3.1%. However, reported revenues fell 17.5% from the year-ago figure of $3.6 billion.
Operational Highlights
Gross profit in the reported quarter was $63.6 million, down from $231.4 million a year ago.
Total operating expenses increased 732.2% to $829.0 million, due to higher selling, general and administrative expenses. Restructuring and asset impairment costs and production start-up costs largely contributed to the rise.
Operating loss during the quarter was $765.4 million compared to income of $131.8 million in the year-ago quarter.
Financial Performance
First Solar had $1,347.2 million of cash and cash equivalents as of Dec 31, 2016, up from $1,126.8 million at 2015 end.
Long-term debt was $160.4 million at the end of the fourth quarter, compared with $251.3 million as of Dec 31, 2015.
2017 Guidance
First Solar has increased its revenue guidance to the band of $2.8–$2.9 billion from $2.5–$2.6 billion projected earlier. However, it has lowered the gross margin guidance to the range of 11–13% (12.5–14.5% guided earlier). The company reiterated the operating income guidance in the range of $40–$80 million. Meanwhile, the company has trimmed its operating cash flow guidance to reflect cash outflow of $250–$350 million band, compared to $550–$650 million predicted earlier.
The company reaffirmed its panel shipment projection to the 2.4−2.6 gigawatts (“GW”) band.
Full-year earnings are still expected in a band of a break-even to 50 cents per share.
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 $1.27 per share in fiscal 2016 (ended Nov 30, 2016), beating the Zacks Consensus Estimate of $1.10.
The partnership reported net income of $4.2 million in the fourth quarter against net loss of $8.6 million in the year-ago period.
An Upcoming Peer Release
Canadian Solar, Inc. (CSIQ - Free Report) is expected to release fourth-quarter 2016 results on Mar 9. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Rank
First Solar presently carries a Zacks Rank #4 (Sell).
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First Solar Inc. (FSLR - Free Report) reported fourth-quarter 2016 earnings of $1.24 a share, beating the Zacks Consensus Estimate of 97 cents by 27.8%. The reported number, however, declined 22.5% from the prior-year figure of $1.60.
For 2016, the company reported a loss of $3.48 per share. The Zacks Consensus Estimate for the year was earnings of $4.71. In the year-ago period, First Solar reported earnings of $5.37 per share.
Revenues
First Solar’s revenues of $480.4 million in the quarter surpassed the Zacks Consensus Estimate of $392 million by 22.6%. Revenues also declined 49% from the year-ago figure of $942.3 million. The decline is primarily attributable to the completion of multiple systems projects during the quarter, partially offset by higher module-only sales.
Full-year revenues came in at $2.95 billion, beating the Zacks Consensus Estimate of $2.86 billion by 3.1%. However, reported revenues fell 17.5% from the year-ago figure of $3.6 billion.
Operational Highlights
Gross profit in the reported quarter was $63.6 million, down from $231.4 million a year ago.
Total operating expenses increased 732.2% to $829.0 million, due to higher selling, general and administrative expenses. Restructuring and asset impairment costs and production start-up costs largely contributed to the rise.
Operating loss during the quarter was $765.4 million compared to income of $131.8 million in the year-ago quarter.
Financial Performance
First Solar had $1,347.2 million of cash and cash equivalents as of Dec 31, 2016, up from $1,126.8 million at 2015 end.
Long-term debt was $160.4 million at the end of the fourth quarter, compared with $251.3 million as of Dec 31, 2015.
2017 Guidance
First Solar has increased its revenue guidance to the band of $2.8–$2.9 billion from $2.5–$2.6 billion projected earlier. However, it has lowered the gross margin guidance to the range of 11–13% (12.5–14.5% guided earlier). The company reiterated the operating income guidance in the range of $40–$80 million. Meanwhile, the company has trimmed its operating cash flow guidance to reflect cash outflow of $250–$350 million band, compared to $550–$650 million predicted earlier.
The company reaffirmed its panel shipment projection to the 2.4−2.6 gigawatts (“GW”) band.
Full-year earnings are still expected in a band of a break-even to 50 cents per share.
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 $1.27 per share in fiscal 2016 (ended Nov 30, 2016), beating the Zacks Consensus Estimate of $1.10.
The partnership reported net income of $4.2 million in the fourth quarter against net loss of $8.6 million in the year-ago period.
An Upcoming Peer Release
Canadian Solar, Inc. (CSIQ - Free Report) is expected to release fourth-quarter 2016 results on Mar 9. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks Rank
First Solar presently carries a Zacks Rank #4 (Sell).
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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