Tag Archives: spwr

First Solar Stock Tanks On $100 Mil Sales Miss; CFO Takes Reins

First Solar ( FSLR ) stock was torched late Wednesday when the No. 1 installer reported Q1 sales that missed Wall Street’s mark by more than $100 million and announced that CFO Mark Widmar would succeed CEO James Hughes. In after-hours trading, First Solar stock was down 4.5% after closing up 1.3% in the regular session. Shares are down 6% since January, outperforming No. 2 rival SunPower ( SPWR ) stock, which is down 27% over the past four months. For Q1, First Solar reported $848 million in sales, up 3% year over year, and $1.66 earnings per share, swinging from a 62-cent per-share loss in the year-earlier period. Sales fell $94 million sequentially and missed analyst views for $106% year-over-year growth. But EPS topped expectations for 93 cents. First Solar blamed the timing of systems-revenue recognition for the sequential drop in sales, but noted the plunge was partially offset by higher revenue from the Desert Stateline project. The company bumped up the low end of its full-year EPS guidance to $4.10-$4.50 from earlier expectations for $4-$4.50. EPS would be down 20% at the midpoint of guidance, potentially signaling a trough , according to Deutsche Bank analyst Vishal Shah. Full-year sales guidance for $3.8 billion to $4 billion was unchanged and would be up 9% at the midpoint. Chairman Michael Ahearn praised Hughes for his four years of leadership. His exit had not been expected. “Leadership succession planning has been a joint effort between Jim and the board of directors,” First Solar spokesman Steve Krum told IBD via email. “All parties are supportive of this change, which was part of an existing plan. The board and Jim believe that Mark’s proven leadership and expertise make him an ideal choice for leading the company into its next phase of growth.” Hughes will officially step down June 30, but will remain on the board and continue in an advisory role. “Under Jim’s astute guidance, First Solar achieved the strongest technology position in our history, with record bookings of new business and unparalleled financial strength in the industry,” Ahearn said in a statement.

First Solar Q1 Sales Expected To Double; 2017 Could Mark EPS Trough

Wall Street’s call for No. 1 solar installer  First Solar ( FSLR ) to exceed $3.50 in 2017 earnings might be “too high,” but that year also could mark a trough for the company’s profit, Deutsche Bank analyst Vishal Shah said Tuesday. Shah reiterated his buy rating — while also cutting his price target to 80 from 86 — on First Solar stock ahead of the company’s Q1 earnings report, due out after the close Wednesday. First Solar’s annual earnings are expected to dip 20% to $4.30 in 2016 and by another 18% to $3.53 in 2017, according to the consensus of 21 analysts polled by Thomson Reuters. But Shah sees the company returning to earnings growth in 2018. “We believe First Solar should be in a position to achieve $4.35-$5 (earnings per share) in 2020 in a base case scenario, or as high as $7.30-$8.50 in 2020 in a bull case scenario,” he wrote in a research report. The company’s EPS jumped 37% in 2015 to $5.37. For Q1, the consensus expects First Solar to report $958.3 million in sales, more than doubling year over year, and 90 cents EPS, swinging from a per-share loss of 60 cents in the year-earlier quarter. Both metrics are seen dipping in Q2. But Shah calls First Solar “a relative safe haven in the cleantech sector,” citing a strong balance sheet and robust near-term outlook. For 2016, First Solar’s earlier guidance called for 8% year-over-year sales growth. The company has a 3-gigawatt backlog for 2017-2020 comprised of 2 GW in system sales and 1 GW in module sales. Recent bookings have shifted in conjunction with First Solar’s earlier guidance for 80% modules and 20% systems in incremental bookings. Shah expects First Solar to book 2 GW-3.5 GW in system business for 2017-2020, while shipping 17 GW of modules into internal systems/third module customers. In early afternoon trading on the stock market today , First Solar stock was up 1%, near 61. Shares are down 8% this year but have fared better than IBD’s 20-company Energy-Solar industry group, which is down 27%. First Solar tops the group in terms of market value, with residential installer SolarCity ( SCTY ) and rival solar developer SunPower ( SPWR ) trailing distantly. Together, First Solar and SunPower sponsor yieldco 8point3 Energy Partners ( CAFD ), fourth in market value.

First Solar, SunPower To Withstand SunEdison Inferno: Guggenheim

First Solar ( FSLR ) and SunPower ( SPWR ) stocks flashed Wednesday after a Guggenheim analyst said rival  SunEdison ‘s ( SUNE ) “collapse” wouldn’t torch the duo and their yieldco 8point3 Energy Partners ( CAFD ). Just ahead of the closing bell on the stock market today , SunPower stock was up about 3%, leading First Solar stock which was up about 2%. Shares of 8point3 Energy Partners trailed, up 0.5%, ahead of beleaguered SunEdison stock, down about 7% and trading below 40 cents. Broadly, solar stocks lit up Wednesday. IBD’s 21-company Energy-Solar industry group was up 2% in late-afternoon trading. SunEdison stock has plunged 99% since its 2015 high on July 20, when it announced its plan to acquire Vivint Solar. Residential installer Vivint Solar scrapped the sale in December, citing SunEd’s lagging financials. Last month, SunEdison’s yieldco TerraForm Global ( GLBL ) distanced itself from massive project developer SunEd, which could be headed for a bankruptcy protection filing soon , according to reports. SunEdison may be in technical default on $725 million in second-tier loans unless it negotiated extensions with creditors. ITC Extension A Boon But First Solar and SunPower won’t feel that heat, Guggenheim analyst Sophie Karp wrote in a research report. Karp initiated coverage on First Solar stock with a buy rating, ahead of SunPower and 8point3 Energy Partners stocks, which have neutral ratings. Congress’ extension to the key Investment Tax Credit (ITC), which underpins the U.S. solar industry, will prove a boon for large-scale developers like First Solar and SunPower, she wrote. Residential installers like SolarCity ( SCTY ) and Sunrun ( RUN ) won’t see the same benefits. “We do not think that residential developers will be main beneficiaries due to the fiercely competitive nature of their business,” she wrote. “Despite operating in a fragmented and competitive market (large-scale developers) are still much better protected and will be able to retain more benefits.” But SunPower might be too internationally stretched to reap the ITC extension benefits as fully as First Solar, Karp wrote. Prepping for the expected expiration Dec. 31, 2016, SunPower invested heavily in international expansion. “Given that the ITC extension has changed the calculus domestically, we wonder if SunPower is now too thinly stretched to take advantage of this backdrop,” Karp wrote. Her price target on SunPower stock is a 21. She lists First Solar stock with a 77 price target. SunEdison’s collapse will likely lead First Solar and SunPower to bring their financing back to basics, Karp wrote. Project financing will be available to reputable players at attractive rates, but yieldcos will likely continue to be shut out of the market. Meanwhile, tech innovations are driving solar costs down and storage is on the horizon, Karp wrote. Storage is often seen as a pie-in-the-sky innovation to cut solar customers’ reliance on utilities at night and on cloudy days.