FSLR’s 1H15 Revenues Fall while SUNE’s Remain Steady
The Sun Shines on FirstSolar in 2Q15 as SunEdison Faces Headwinds
FirstSolar (FSLR)
In Part 3, we had a look at FirstSolar’s (FSLR) 2Q15 revenues and how Southern Company (SO) was a driving factor behind the growth. While FirstSolar’s 2Q15 revenues surged, its 1H15 revenues came in lower than 1H14 due to subdued performance in 1Q15. The company’s 1H15 revenues came in at $1,365.4 million, 8.6% lower than 1H14’s $1,494.5 million.
The systems segment reported $818.4 million in revenues in 1H15 compared to $983.6 million in 1H14. Some large projects for third parties added to 1H14 revenues but weren’t accounted in 1H15 revenues due to completion, resulting in the drop in revenues. On the other hand, the components segment saw a 7% increase in revenues to $547.1 million in 1H15 from $510.9 million in 1H14. The increase was primarily on account of higher third-party sales, most of which were reported in 1Q15. The company produced 1,103 MW of panels in 1H15 compared to 888 MW in 1H14.
SunEdison
In Part 4, we discussed SunEdison’s 2Q15 revenue performance and how it diverged from FirstSolar’s (FSLR). The divergence also occurred in 1H15. While FirstSolar saw a 9% drop in revenues, SunEdison (SUNE) reported a marginal increase in revenues to $778 million in 1H15 from $771 in 1H14. As was the case of 2Q15, TerraForm Power’s (TERP) 1H15 revenues scaled higher to $201 million in 1H15 from $30 million in 1H14. The renewable energy segment’s revenues dropped as SunEdison sold fewer megawatts to third parties in order to retain these projects on its balance sheet. The segment’s sales came in at 92 MW in 1H15 at an average price of $2.14 per watt (one-millionth of a megawatt). This compares with the sale of 168 MW at an average price of $2.29 per watt.
SUNE and FSLR are constituents of the Guggenheim Solar ETF (TAN) and the SPDR S&P 500 ETF (SPY). FSLR and SUNE account for 8.3% and 5.0% of TAN’s total holdings, respectively.
How about cost structure? Is there any difference? Let’s find out in the following parts.
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