First Solar (FSLR) Q2 Earnings Miss, Revenues Decline Y/Y

First Solar Inc. FSLR reported second-quarter 2018 loss of 46 cents a share. The Zacks Consensus Estimate was pegged at a loss of a penny. The company recorded earnings of 50 cents per share in the year-ago quarter.

Revenues

First Solar’s revenues of $309.3 million in the quarter also lagged the Zacks Consensus Estimate of $479 million by 35.5%. Revenues declined 50.4% from the year-ago figure of $623.3 million, primarily due to lower system and third-party module sales.

Operational Highlights

Gross loss in the reported quarter was $8.06 million against gross profit of $110.9 million in the year-ago quarter.

Total operating expenses contracted 1.43% to $95.6 million due to low research and development costs along with the elimination of restructuring and asset impairment expenses.

Operating loss during the quarter was $103.6 million, while the company reported an operating profit of $13.9 million in the year-ago quarter.

Financial Performance

First Solar had $2,024.5 million of cash and cash equivalents as of Jun 30, 2018, down from $2,268.5 million at the end of 2017.

Long-term debt was $448.5 million at the end of the quarter compared with $380.5 million as of Dec 31, 2017.

Cash and marketable securities at the end of the second quarter increased to $3.1 billion from $2.9 billion at the end of the first quarter. The increase was primarily due to proceeds received from the sale of the company’s interests in 8point3 Energy Partners.

First Solar, Inc. Price, Consensus and EPS Surprise

 

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

2018 Guidance

First Solar narrowed its revenue guidance to the band of $2.5-$2.6 billion from $2.45-$2.65 billion. It also slashed the gross margin guidance to the band of 20.5-21.5% (21.5-22.5% guided earlier). Furthermore, the company cut its operating income guidance to the range of $120-$160 million from the previous $130-$180 million.

Meanwhile, First Solar raised its operating cash flow guidance to $100-$200 million from $0-$100 million predicted earlier.

Currently, the company expects panel shipment in the range of 2.8-2.9 gigawatts (GW) compared with the prior guidance of 2.9-2.3 GW.

The company reiterated its 2018 earnings at the range of $1.50-$1.90 per share.

Zacks Rank

First Solar currently carries a Zacks Rank #5 (Strong Sell).

Upcoming Oils-Energy Releases

Sunrun Inc. (RUN), a Zacks Rank #1 (Strong Buy) stock, is expected to release second-quarter 2018 results on Aug 9. It currently has an Earnings ESP of +24.83%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Energen Corporation EGN is expected to release second-quarter results on Aug 7. It currently has an Earnings ESP of +0.09% and carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.

Exterran Corporation EXTN is expected to release second-quarter results on Aug 6. It currently has an Earnings ESP of +46.67% and carries a Zacks Rank #3.

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