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First Solar’s Q1 Earnings: Fresh Upside for Its Stock?

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First Solar

First Solar (FSLR) is scheduled to release its first-quarter earnings on May 2. According to the consensus estimates, First Solar will report total revenues of $624.0 million for the quarter ending March 31. In the same quarter last year, the company reported total revenues of $567.0 million, which implies an increase of 10% YoY (year-over-year). First Solar has missed analysts’ revenue estimates for three consecutive quarters. In the fourth quarter of 2018, First Solar reported revenues of $691.0 million.

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Earnings highlights

First Solar’s earnings for fiscal 2018 were $1.36 per share—compared to a loss of $1.59 per share in 2017. Overall, 2018 was terrible for solar companies due to policy uncertainties and declining demand. First Solar’s revenues fell ~24% in 2018 compared to 2017.

Despite a subdued performance in 2018, First Solar has kept its earnings guidance intact for 2019. The company projects revenues of $3.25 billion–$3.45 billion. The EPS is expected to be $2.25–$2.75 per share for 2019.

First Solar’s innovative and efficient Series 6 PV module could help its performance in 2019. Wall Street analysts expect strong revenues and earnings growth due to increased demand for First Solar this year.

Solar stocks had a terrific start to 2019. So far, First Solar stock has risen more than 45% in 2019. The Guggenheim Solar ETF (TAN) has risen ~37% during this period. To learn more, read Why 2019 Could Be Better for First Solar.

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