First Solar (FSLR) Misses On Q1 Earnings, Ups '19 Sales View

First Solar Inc. (NASDAQ:FSLR) incurred a loss of 64 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents. The reported figure also deteriorated significantly from the prior-year quarter’s earnings of 78 cents.

Sales

First Solar’s sales of $532 million in the reported quarter missed the Zacks Consensus Estimate of $622 million by 14.5%. The top line also decreased 6.2% from the year-ago quarter’s figure of $567.3 million. The year-over-year decline can be attributed to lower systems project revenues in the United States and Japan.

Operational Highlights

In the first quarter, gross profit totaled $0.1 million, significantly down from $172.8 million registered a year ago. The deterioration was due to First Solar’s higher cost of sales in the quarter under review.

Total operating expenses declined 22.1% to $76.8 million due to lower selling, general and administrative expenses as well as production start-up expenses.

However, the company incurred an operating loss of $76.6million, reflecting a massive deterioration from operating income of $74.2 million in the year-ago quarter. The downside was due to significantly low gross profit.

Financial Performance

First Solar had $1,013.4 million of cash and cash equivalents as of Mar 31, 2019, down from $1,403.6 million as of Dec 31, 2018.

Long-term debt totaled $558.4 million at the end of first quarter compared with $461.2 million as of Dec 31, 2018.

2019 Guidance

First Solar has updated its 2019 guidance, partially. The company continues to expect earnings in the range of $2.25-$2.75 per share. The Zacks Consensus Estimate for 2019 earnings, pegged at $2.48, lies just below the midpoint of the company’s projected range.

On the top-line front, the company has raised its expectation from the earlier range of $3.25-$3.45 billion to $3.5-$3.7 billion band. The Zacks Consensus Estimates for the company’s 2019 sales, pegged at $3.35 billion, lies much below the midpoint of the company’sprojected view.

However, it lowered the full-year operating expenses projections from $375-$395 million to $370-$390 million and gross margin expectation from 19.5-20.5% to 18-9%.

Meanwhile, First Solar continues to expect its shipments in the range of 5.4-5.6 gigawatts.

Zacks Rank

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

Upcoming Solar Releases

SunPower Corp. (NASDAQ:SPWR) is slated to release its first-quarter 2019 results on May 9. The company carries a Zacks Rank #2 (Buy).

Sunrun Inc. (NASDAQ:RUN) is scheduled to release its first-quarter 2019 results on May 8. The company sports a Zacks Rank of 1.

SolarEdge Technologies, Inc. (NASDAQ:SEDG) is slated to release its first-quarter 2019 results on May 6. The company carries a Zacks Rank #3.

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