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First Solar (FSLR) Stock Up on Q2 Earnings & Revenue Beat

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First Solar Inc.FSLR reported second-quarter 2016 earnings of 87 cents a share, beating the Zacks Consensus Estimate of 58 cents by 50%. The reported number also surged 67.3% from the prior-year figure of 52 cents per share on the back of higher sales and gross profits.

Shares of First Solar gained 3.1% during after-hours trading, following the announcement of second-quarter results.

First Solar Inc. (FSLR) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Revenues

First Solar's revenues in the quarter increased 4.3% year over year to $934.4 million. Growth is primarily attributable to higher revenues from module-only sales, sale of the Kingbird project and revenue recognition across multiple system projects. Reported revenues also came ahead of the Zacks Consensus Estimate of $904 million by 3.4%.

Operational Highlights

Gross profit in the reported quarter was $191.2 million, up from $164.5 million a year ago.

Total operating expenses increased 69.8% to $182.3 million, largely due to higher research and development expenses, along with restructuring and asset impairment costs.

Operating income was $8.9 million, down from $57.1 million in the year-ago quarter.

FIRST SOLAR INC Price, Consensus and EPS Surprise

FIRST SOLAR INC Price, Consensus and EPS Surprise | FIRST SOLAR INC Quote

Financial Performance

First Solar had $916.7 million of cash and cash equivalents as of Jun 30, 2016, down from $1,126.8 million at 2015 end.

Long-term debt was $161.8 million at the end of the second quarter, compared with $251.3 million as of Dec 31, 2015.

2016 Guidance

First Solar reaffirmed its revenue guidance in the band of $3.8-$4 billion. However, it raised the low end of both the gross margin projection to the range of 18.5-19% (18-19% guided earlier) and the operating income guidance to $310-$370 million ($300-$370 million projected previously). Meanwhile, the company lowered the high end of its operating cash flow guidance to the $500-$650 million band from $500-$700 million expected earlier.

The company reiterated its panel shipment projection of 2.9−3.0 GW.

Full-year earnings are now expected in the band of $4.20−$4.50 per share ($4.10−$4.50 estimated previously).

Quarterly Results at 8point3 Energy

8point3 Energy Partners LP CAFD , a limited partnership formed by First Solar and SunPower Corp. SPWR , reported earnings of 27 cents per share in the second quarter of fiscal 2016 (ending May 31, 2016). The Zacks Consensus Estimate stood at a loss of 2 cents. The partnership swung into profit with a net income of $10 million in the reported quarter, from a net loss incurred in the year-ago period.

Upcoming Peer Releases

SunPower Corp. is slated to report second-quarter 2016 earnings on Aug 9.

SolarCity Corp. SCTY is scheduled to release its second-quarter numbers on Aug 9.

Zacks Rank

First Solar presently carries a Zacks Rank #3 (Hold).

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FIRST SOLAR INC (FSLR): Free Stock Analysis Report

SOLARCITY CORP (SCTY): Free Stock Analysis Report

SUNPOWER CORP-A (SPWR): Free Stock Analysis Report

8POINT3 ENERGY (CAFD): 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.

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