First Solar (FSLR) Q1 Earnings and Revenues Top Estimates

First Solar Inc. FSLR reported first-quarter 2018 earnings of 78 cents per share, surpassing the Zacks Consensus Estimate of a loss of 5 cents, by a huge margin. The reported figure also improved from the prior-year quarter’s earnings of 9 cents per share.

Revenues

In the reported quarter, revenues came in at of $567.3 million, exceeding the Zacks Consensus Estimate of $405 million by 40.1%. However, the top line plunged 36.4% from the year-ago figure of $891.8 million.

First Solar, Inc. Price, Consensus and EPS Surprise

First Solar, Inc. Price, Consensus and EPS Surprise | First Solar, Inc. Quote

Operational Highlights

Gross profit in the first quarter was $172.8 million, up 105.3% from $84.2 million a year ago.

Total operating expenses increased 6.9% to $98.5 million owing to higher production start-up expenses.

Operating income in the quarter totaled $74.3 million compared to operating loss of $8 million in the year-ago quarter.

Financial Performance

First Solar had $1,858.3 million of cash and cash equivalents as of Mar 31, 2018, down from $2,268.5 million at the end of 2017.

Long-term debt was $431.8 million at the end of the first quarter compared with $380.5 million at 2017-end.

2018 Guidance

First Solar reiterated its 2018 earnings guidance in the range of $1.50-$1.90 per share on revenues of $2.45-$2.65 billion. The company also maintained its panel shipment guidance in the band of 2.9-3.0 gigawatts.

Gross margin guidance was also reiterated in the range of 21.5-22.5% while adjusted operating income view were maintained in the band of $130-$180 million.

However, the company slashed its operating cash flow guidance from the band of $100-$200 million to $100 million.

Zacks Rank

First Solar carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Peer Releases

Canadian Solar Inc. CSIQ is expected to release first-quarter 2018 results on June 5. In the last reported quarter, the company delivered a positive earnings surprise of 21.69%.

SolarEdge Technologies SEDG is expected to release first-quarter results on May 9. In the last reported quarter, the company pulled off a positive earnings surprise of 34.92%.

Vivint Solar VSLR is expected to release first-quarter results on May 8. In the last reported quarter, the company delivered a negative earnings surprise of 38.71%.