X
<

Shining Some Light on First Solar

PART:
1 2 3 4 5 6 7 8 9 10 11 12
Part 8
Shining Some Light on First Solar PART 8 OF 12

Why First Solar’s Gross Margins Contracted in 2016

Cost of sales

First Solar’s (FSLR) Components segment saw its cost of sales rise 6% to $1.1 billion in fiscal 2016, from $1.0 billion in fiscal 2015. On the other hand, despite higher volumes, the Systems segment’s cost of sales fell 29% to $1.1 billion in fiscal 2016 from $1.6 billion in fiscal 2015. Overall, the company’s cost of sales was down 16% to $2.3 billion in fiscal 2016 compared with $2.7 billion in fiscal 2015.

Why First Solar&#8217;s Gross Margins Contracted in 2016

Interested in SPWR? Don't miss the next report.

Receive e-mail alerts for new research on SPWR

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Gross profit

First Solar’s gross profit margins narrowed to 23.9% in fiscal 2016 from 25.7% in fiscal 2015. On absolute terms, its gross profit in 2015 and 2016 was $919.3 million and $703.9 million, respectively. First Solar’s 2017 guidance for its gross profit margin is 17%–18%.

Adjusted earnings

In 2016, First Solar’s EBITDA (earnings before interest, tax, depreciation, and amortization) were $555.8 million, and its EBITDA margin was 18.8%, compared with EBITDA of $774.5 million and a 21.6% margin in 2015.

In fiscal 2016, solar power (TAN) peer SunPower Energy (SPWR) saw its adjusted EBITDA margin contract to 6.1% in fiscal 2016 from 16.7% in fiscal 2015, while Canadian Solar’s (CSIQ) contracted to 8.2% in 2016 from 10.0%. Meanwhile, Yingli Solar’s (YGE) adjusted EBITDA margin expanded to 6.6% in 2016 from 2.3% in 2015. In the next part, we’ll discuss First Solar’s net losses.

X

Please select a profession that best describes you: