Shares of the U.S. solar major First Solar Inc. FSLR tumbled 9.43% in after-hours trading on Dec 9 after it released 2016 guidance.
First Solar expects 2016 earnings to come in the range of $4–$4.50 per share (excluding one-time items). Though the midpoint of the guidance, at $4.25 per share, is ahead of the current Zacks Consensus Estimate of $4.05, it shows a 1.4% decline from the expected 2015 number.
The company expects revenues to be between $3.9 billion and $4.1 billion for 2016. The midpoint of the guided range is almost in line with the Street expectation of $4 billion. Sales will likely increase 12.4% from the current Zacks Consensus Estimate of $3.56 billion for 2015.
For 2015, revenues are still expected in the band of $3.5 billion to $3.6 billion while earnings are expected in the range of $4.30 to $4.50 per share. The company projects shipments of 2.9 gigawatts (GW) for 2015 and 2.9 GW to 3 GW for 2016.
Meanwhile, the company expects to spend $300 million to $400 million in 2016, higher than in 2015 given "further advancements in its cost and technology roadmap.” Operating cash flow is projected to be between $500 million and $700 million for 2016 and operating expenses in the $380−$400 million range.
We remind investors that First Solar reported forecast-beating third-quarter results across the board as recognition of revenues from the Desert Stateline project, cost improvements and decreased module recycling/ collection obligations benefited profit margins. The company had even raised its 2015 earnings per share guidance on solid third-quarter performance.
Zacks Rank
First Solar carries a Zacks Rank #2 (Buy). Other better-ranked stocks in the solar space include JA Solar Holdings Co., Ltd. JASO, ReneSola Ltd. SOL and Canadian Solar Inc. CSIQ. While JA Solar and ReneSola sport a Zacks Rank #1 (Buy), Canadian Solar carries the same Zacks rank as First Solar.
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 >>
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
Be the first to comment