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First Solar (FSLR) Incurs Loss in Q2, Misses Sales Estimates

Zacks Equity Research

First Solar Inc. FSLR incurred a loss of 18 cents per share in second-quarter 2019, while the Zacks Consensus Estimate for earnings was pegged at 2 cents. The reported figure, however, improved from the prior-year quarter’s loss of 46 cents per share.

Sales

First Solar’s sales of $585 million in the reported quarter missed the Zacks Consensus Estimate of $689 million by 15.1%. However, the top line surged 89.1% from the year-ago quarter’s figure of $309.3 million.

Operational Highlights

In the second quarter, gross profit totaled $77.1 million against a loss of $8 million registered a year ago.

Total operating expenses declined 10.2% to $85.8 million, owing to low production start-up expenses.

However, the company incurred an operating loss of $8.6 million, much less than an operating loss of $103.6 million in the year-ago quarter.

Financial Performance

First Solar had $1,221.6 million of cash and cash equivalents as of Jun 30, 2019, down from $1,403.6 million as of Dec 31, 2018.

Long-term debt totaled $453 million at the end of the second quarter compared with $461.2 million as of Dec 31, 2018.

First Solar, Inc. Price, Consensus and EPS Surprise

 

First Solar, Inc. Price, Consensus and EPS Surprise

First Solar, Inc. price-consensus-eps-surprise-chart | First Solar, Inc. Quote

2019 Guidance

For 2019, First Solar continues to expect earnings of $2.25-$2.75 per share. The Zacks Consensus Estimate for 2019 earnings pegged at $2.39 lies below the midpoint of the company’s projected range.

The company continues to expect revenues of $3.5-3.7 billion. The Zacks Consensus Estimates for the company’s 2019 sales, pegged at $3.57 billion, lies below the midpoint of the company’s projected view.

However, it lowered the full-year operating expenses projection from $370-$390 million to $360-$380 million and raised gross margin expectation to 18.5-19.5% from 18-19%.

Meanwhile, First Solar continues to expect shipments of 5.4-5.6 gigawatts for the year.

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

SolarEdge Technologies SEDG is slated to release second-quarter 2019 results on Aug 6.

Sunrun Inc. RUN is scheduled to report quarterly numbers on Aug 7.

A Recent Solar Release

SunPower Corp. SPWR incurred adjusted loss of 22 cents per share in the second quarter, wider than the Zacks Consensus Estimate of a loss of 9 cents. The company incurred a loss of a penny per share in the year-ago quarter.

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