First Solar Earnings: Here’s Why Investors are Not Happy Now

First Solar, Inc. (NASDAQ:FSLR) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 8.71%.

First Solar, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 76.36% to $0.39 in the quarter versus EPS of $1.65 in the year-earlier quarter.

Revenue: Decreased 45.68% to $520 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: First Solar, Inc. reported adjusted EPS income of $0.39 per share. By that measure, the company missed the mean analyst estimate of $0.52. It missed the average revenue estimate of $721.08 million.

Quoting Management: “We are creating an exciting synergy with this deal,” said Jim Hughes, First Solar’s Chief Executive Officer. “The addition of GE’s PV thin film technology and R&D resources will advance our technology roadmap, while realizing cost reduction in our manufacturing process.”
“To lead in today’s solar industry, you must have the most competitive technology at the most competitive cost position,” said Anne McEntee, president and CEO of GE’s renewable energy business. “We’re excited to partner with First Solar to accelerate innovation and bring our complementary technology and R&D to market faster through its manufacturing capabilities.”

Key Stats (on next page)…

Revenue decreased 31.14% from $755.21 million in the previous quarter. EPS decreased 43.48% from $0.69 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.3 to a profit $1.31. For the current year, the average estimate has moved down from a profit of $4.23 to a profit of $4.14 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)