U.S. Markets closed

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.


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.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
First Solar, Inc. (FSLR) : Free Stock Analysis Report
Sunrun Inc. (RUN) : Free Stock Analysis Report
SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
SunPower Corporation (SPWR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research