First Solar Inc (NASDAQ:FSLR) Information Technology - Semiconductors | Reports April 27, After Market Closes
Key Takeaways
- The Estimize consensus is calling for earnings per share of $0.91 on $930.07 million in revenue, 4 cents higher than Wall Street on the bottom line and $21 million below on the top
- First Solar is leaps and bounds ahead of its peers from a financial perspective, who continue to turn losses quarter after quarter
- The Solar Industry has hit a rocky patch lately but should make some decent strides this year as oil prices are on the rise
- What are you expecting for FSLR?
The past handful of years have been nothing short of a roller coaster for the solar industry. All the strides to promote solar energy and make it more accessible has not translated to financial success. First Solar has been the true anomaly and is coming off three consecutive quarters of beating on both the top and bottom line. The company has continues to outperform the rest of the solar industry with an effective business model, sound strategy and of course, good earnings.
The Estimize consensus is calling for earnings per share of $0.91 on $930.07 million in revenue, 4 cents higher than Wall Street on the bottom line and $21 million below on the top. Since its last report, per share estimates have increased 63% with revenue up an additional 5%. By comparison, profits are expected to increase 2.5 times while sales are looking to almost double. It’s not surprising that the stock tends to move leading up and through earnings season. On average, shares increase as much as 7% 30 days ahead of earnings and slowly taper off to 2% in the 5 days following results. Overall though, the stock has been on a slide and is now down 20% on the past 12 months.
First Solar continues to make impressive strides compared to some of its peers including SolarCity Corporation (NASDAQ:SCTY) and Sunedison Inc (NYSE:SUNE). From a financial perspective, First Solar is one of the few solar companies that hasn’t consistently posted a loss. As a result the stock hasn’t been hit as hard as the above companies, whose shares are down almost 50% since this time last year. Solar power is likely to get a second chance this year as oil and energy prices continue to climb. This should benefit First Solar as it aggressively pursues projects in emerging markets like India and South Africa. Meanwhile, First Solar’s superior balance sheet and a healthy backlog has bolstered its competitive advantage.
Do you think FSLR can beat estimates?