A month has gone by since the last earnings report for First Solar, Inc. (FSLR - Free Report) . Shares have added about 13.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 catalysts.
First Solar Reports Earnings in Q1, Revenues Beat
First Solar reported first-quarter 2017 earnings of $0.25 a share. The Zacks Consensus Estimate was pegged at a loss of $0.13. The reported number declined 84.9% from the prior-year figure of $1.66.
Revenues
First Solar’s revenues of $891.8 million in the quarter surpassed the Zacks Consensus Estimate of $699 million by 27.6%. Revenues also grew 1.8% from the year-ago figure of $876.1 million, primarily attributable to the sale of the Moapa project, partially offset by lower third-party module sales.
Operational Highlights
Gross profit in the reported quarter was $84.2 million, down from $277.6 million a year ago.
Total operating expenses contracted 5.6% to $92.2 million due to lower research and development and selling, general and administrative expenses.
Operating loss during the quarter was $8 million, in contrast to income of $179.9 million in the year-ago quarter.
Financial Performance
First Solar had $1,656.2 million of cash and cash equivalents as of Mar 31, 2017, up from $1,347.2 million at 2016-end.
Long-term debt was $265.8 million at the end of the first quarter, compared with $160.4 million as of Dec 31, 2016.
2017 Guidance
First Solar raised its revenue guidance to the band of $2.85–$2.95 billion from $2.8–$2.9 billion. It has also lifted the gross margin guidance to 12.5–14.5% (11–13% guided earlier). The company reiterated the operating income guidance in the range of $40–$80 million. Meanwhile, the company raised its operating cash flow guidance to $350–$450 million, compared with $250–$350 million predicted earlier.
The company reaffirmed its panel shipment projection at the 2.4−2.6 gigawatts (“GW”) band.
Full-year earnings are now expected in the range of $0.25−$0.75 per share compared with the prior guidance of a breakeven to $0.50.
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.
First Solar, Inc. Price and Consensus
VGM Scores
At this time, the stock has a nice Growth Score of 'B', however its Momentum is lagging a lot with a 'F'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for growth and value investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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.
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A month has gone by since the last earnings report for First Solar, Inc. (FSLR - Free Report) . Shares have added about 13.6% in that time frame, outperforming the market.
Will the recent positive trend continue leading up to the stock's next earnings release, or is it 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 catalysts.
First Solar Reports Earnings in Q1, Revenues Beat
First Solar reported first-quarter 2017 earnings of $0.25 a share. The Zacks Consensus Estimate was pegged at a loss of $0.13. The reported number declined 84.9% from the prior-year figure of $1.66.
Revenues
First Solar’s revenues of $891.8 million in the quarter surpassed the Zacks Consensus Estimate of $699 million by 27.6%. Revenues also grew 1.8% from the year-ago figure of $876.1 million, primarily attributable to the sale of the Moapa project, partially offset by lower third-party module sales.
Operational Highlights
Gross profit in the reported quarter was $84.2 million, down from $277.6 million a year ago.
Total operating expenses contracted 5.6% to $92.2 million due to lower research and development and selling, general and administrative expenses.
Operating loss during the quarter was $8 million, in contrast to income of $179.9 million in the year-ago quarter.
Financial Performance
First Solar had $1,656.2 million of cash and cash equivalents as of Mar 31, 2017, up from $1,347.2 million at 2016-end.
Long-term debt was $265.8 million at the end of the first quarter, compared with $160.4 million as of Dec 31, 2016.
2017 Guidance
First Solar raised its revenue guidance to the band of $2.85–$2.95 billion from $2.8–$2.9 billion. It has also lifted the gross margin guidance to 12.5–14.5% (11–13% guided earlier). The company reiterated the operating income guidance in the range of $40–$80 million. Meanwhile, the company raised its operating cash flow guidance to $350–$450 million, compared with $250–$350 million predicted earlier.
The company reaffirmed its panel shipment projection at the 2.4−2.6 gigawatts (“GW”) band.
Full-year earnings are now expected in the range of $0.25−$0.75 per share compared with the prior guidance of a breakeven to $0.50.
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.
First Solar, Inc. Price and Consensus
VGM Scores
At this time, the stock has a nice Growth Score of 'B', however its Momentum is lagging a lot with a 'F'. The stock was allocated a grade of 'B' on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of 'C'. If you aren't focused on one strategy, this score is the one you should be interested in.
Based on our scores, the stock is equally suitable for growth and value investors.
Outlook
The stock has a Zacks Rank #3 (Hold). We are expecting an inline return from the stock in the next few months.
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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