Credit: Shutterstock photoFirst Solar Inc.FSLR reported fourth-quarter 2018 earnings of 49 cents per share, which missed the Zacks Consensus Estimate of 64 cents by 23.1%. The reported figure, however, improved significantly from the prior-year quarter's loss of $4.14.
For 2018, the company's earnings of $1.36 per share lagged the Zacks Consensus Estimate of $1.51 by 9.9%. The full-year figure, however, improved significantly from the prior year's loss of $1.59.
Sales
First Solar's sales of $691.2 million in the reported quarter fell short of the Zacks Consensus Estimate of $803.5 million by 14%. Nonetheless, the top line improved a massive 103.8% from the year-ago quarter's figure of $339.2 million.
For 2018, the company generated sales of $2.24 billion, which missed the Zacks Consensus Estimate of $2.36 billion by 5.1%. The reported figure also plunged 91.7% from the year-ago figure of $2.94 billion.
First Solar, Inc. Price, Consensus and EPS Surprise
First Solar, Inc. Price, Consensus and EPS Surprise | First Solar, Inc. Quote
Operational Highlights
In the fourth quarter, gross profit was $98.3 million, up 58.4% from $62.1 million registered a year ago.
Total operating expenses contracted 10.1% to $87.3 million due to lower selling, general and administrative expenses, production start-up expenses as well as the mitigation of restructuring and asset impairments expenses.
Consequently, operating income amounted to $11 million, reflecting a massive improvement from operating loss of $35.1 million incurred in the year-ago quarter.
Financial Performance
First Solar had $1,403.6 million of cash and cash equivalents as of Dec 31, 2018, down from $2,268.5 million at the end of 2017.
Long-term debt was $461.2 million at the end of 2018 compared with $380.5 million as of Dec 31, 2017.
2019 Guidance
First Solar has updated its 2019 guidance, partially. The company continues to expec t earnings per share in the range of $2.25-$2.75 on sales of $3.25-$3.45 billion. However, it lowered the full-year operating expenses projections from $390-$410 million to $375-$395 million and gross margin expectation from 20-21% to 19.5-20.5%.
Meanwhile, First Solar continues to expect its shipments in the range of 5.4-5.6 Gigawatts.
The Zacks Consensus Estimates for the company's 2019 earnings and sales are pegged at $2.45 and $3.25 billion, respectively. While the bottom-line estimate is below the midpoint of the company's guided range, the top-line estimate matches the lower end of the same.
Zacks Rank
First Solar currently carries a Zacks Rank #4 (Sell).
Recent Solar Release
SunPower Corp. SPWR incurred fourth-quarter 2018 adjusted loss of 21 cents per share, narrower than the Zacks Consensus Estimate of a loss of 38 cents.
SolarEdge Technologies SEDG reported fourth-quarter 2018 adjusted earnings of 63 cents per share, which missed the Zacks Consensus Estimate of 70 cents by 10%.
Upcoming Solar Releases
Canadian Solar Inc. CSIQ is scheduled to release fourth-quarter 2018 results on Mar 21. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
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First Solar, Inc. (FSLR): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
