First Solar Inc

Wall Street analysts have given SunPower stock a mean target price of $8.56, which indicates a potential upside of 11.5% for the next 12 months.

Overall, 2019 turned out to be volatile for solar stocks. However, there were some bright spots among broader markets last year.

Wall Street analysts have given First Solar a mean target price of $70.9, which indicates a potential upside of 22% for the next 12 months.

First Solar stock lost 3.4% last week after the US Court of International Trade blocked the Trump administration from withdrawing a tariff exemption.

To boost the domestic solar industry, Trump imposed a 30% tariff on imported panels last year. However, the policy severely impacted the sector.

Solar stocks have been a sweet spot among equities this year. On average, they’ve gained 50% this year, notably outperforming broader markets.

The recent uptrend in First Solar (FSLR) stock might have soothed investors, but the worst may not be over yet. Here’s why.

Enphase Energy stock fell almost 4% on Monday. The company announced its supply agreement with Sunrun to provide seventh-generation IQ microinverters.

Innovation will be the competitive advantage for Tesla Solar. Tesla launched a solar roof tile last month that’s more efficient and is easier to install.

First Solar stock has an EV-to-EBITDA valuation of 6.4x its estimated earnings for the next 12 months. The industry’s mean valuation is greater than 11x.

Since reaching an all-time high in August, Enphase Energy stock has almost halved in value. However, its recent quarterly earnings weren’t so bad.

SunPower announced its plans to spin-off businesses into global solar panel manufacturing and US distributed solar generation and storage.

First Solar’s (FSLR) third-quarter earnings didn’t boost its stock. Investors were disappointed with wide misses on the revenues and earnings front.

SunPower (SPWR) surprised investors with strong third-quarter earnings on October 30. It reported EPS of $0.07, beating analysts’ consensus estimate.

Yesterday, First Solar (FSLR) returned to profits in Q3 after reporting deep losses in Q2. FSLR missed analysts’ estimates and posted EPS of $0.29.

Solar inverter maker Enphase Energy (ENPH) stock was up more than 4% at 11:10 ET today. ENPH recovered after it fell more than 8% yesterday.

Solar panel maker First Solar (FSLR) plans to report its Q3 earnings on October 24. Analysts expect the company to report earnings per share of $1.19.

Solar stocks highlighted the top-rallied sectors this year. After hitting multiyear highs, many solar stocks have fallen as much as 40% since August.

In this video interview, Ben Lenail of Alta Devices talks about the future of solar power in next-generation vehicles and beyond.

Solar stocks have had a great run this year. Strong demand, falling costs, and higher corporate investments have supported these renewables in 2019.

Almost all solar stocks fell sharply on September 26. First Solar (FSLR) fell about 7% yesterday while this year’s top gainer, Enphase Energy, fell 7.5%.

Top solar stock First Solar (FSLR) has surged about 10% in September. FSLR is trading close to its 52-week high and might continue to march upward.

Almost all the solar stocks have had a fantastic run so far this year, and First Solar (FSLR) is no exception. FSLR stock is up more than 45% year-to-date.

Enphase Energy has fallen almost 20% from its all-time high of $35.4. The stock is still sitting at a huge gain of approximately 500% this year.

Trade war intensified in August and that took a toll on the broader markets. However, solar stocks were largely positive and hint at future demand.

First Solar (FSLR) stock fell more than 10% from its 52-week high early this month. In a strong solar environment, FSLR stock has gained more than 45% YTD.

Solar microinverter company Enphase Energy (ENPH) has rallied more than any other stock in the space this year with a more-than-600% gain.

Solar stocks have been on an impressive run this year. So far, Enphase Energy (ENPH) stock has risen more than 530% in 2019.

Solar stocks started last week significantly lower due to increased trade war concerns. The solar energy space is one of the hottest sectors this year.

Among the top solar stocks, First Solar broke below its 50-day moving average level, which might open a new downside for the stock in the short term.

First Solar (FSLR) reported its second-quarter earnings results yesterday. It reported EPS of -$0.18 for the quarter.

First Solar’s second-quarter earnings on August 1 will likely decide its path going forward. The solar space is one of the hottest sectors this year.

Solar stocks traded a little sluggish in the last few weeks. First Solar has risen more than 53%, while SunPower has risen more than 106% this year.

The top solar stocks seem unstoppable. The stocks rose more than 3% last week. Solar stocks are trading at their respective multiyear highs.

There has been a flurry of positive indicators supporting solar stocks recently.

First Solar (FSLR) stock offers a potential upside of 9% for the next 12 months. The stock has a mean target price of $70.3—compared to its current market price of $61.8.

The Solar Energy Industries Association and Wood Mackenzie expect solar installations to increase 25% in 2019 compared to 2018. Previously, the group expected 14% growth in 2019.

According to analysts’ consensus estimates, First Solar (FSLR) stock offers a potential upside of more than 15% for the next 12 months.

First Solar (FSLR) reported its first-quarter earnings on May 2. The company reported total revenues of $532.0 million.

First Solar (FSLR) is scheduled to release its first-quarter earnings on May 2. First Solar is expected to report total revenues of $624.0 million.

Based on analysts’ estimates, First Solar stock offers a potential upside of ~8% for the next 12 months.

First Solar (FSLR) stock rose more than 8% on April 10 and closed almost at its ten-month high.

For the first quarter of 2019, Albemarle has declared a quarterly dividend of $0.3675 per share.

First Solar (FSLR) stock offers a healthy potential upside of ~18% going forward, compared to its current market price of $54.71.

First Solar (FSLR) stock is currently trading at $54.71. The strength in the stock is underlined by its fair premium to both its key support levels.

Let’s look at the current valuations for the top solar stocks in this part of our series. First Solar (FSLR) stock is currently trading at a forward EV-to-EBITDA valuation of 7x.

2019 could be a lot better and a step in a different direction for the solar energy sector as a whole. Solar stocks have already performed well so far.

First Solar (FSLR) released its fourth-quarter and full-year 2018 earnings on February 21.

The Vanguard Group, the top institutional investor in First Solar, continued to trim its stake in the solar company during the fourth quarter.

Solar stocks started 2019 on a solid note. So far, the Invesco Solar ETF (TAN) has risen more than 30% in 2019.

SunPower reported its fourth-quarter and fiscal 2018 financial results on February 13. The company reported an adjusted loss of $0.21 per share.

In the past year, First Solar (FSLR) stock returned -37%, while SunPower (SPWR) returned -41%.

First Solar stock is trading at a forward PE ratio of 18x. On average, solar stocks (TAN) are trading at a forward valuation multiple of 14x.

First Solar (FSLR) stock offers a potential upside of 58% going forward compared to its current market price of $40.5.

First Solar (FSLR) stock is trading at a forward EV-to-EBITDA multiple of 4x based on analysts’ earnings estimates for 2019.

Air Products and Chemicals’ (APD) Industrial Gases–Asia segment accounted for 27.5% of the company’s total revenues in the fourth quarter.

Air Products and Chemicals’ (APD) Industrial Gases–Asia segment accounted for 27.6% of APD’s total revenues in fiscal Q3 2018, expanding by 2.2 percentage points YoY from 25.4%.

On May 24, Ashland announced that it will increase maleic anhydride prices by $0.06 per pound. The price increase will be effective on June 7.

In 3Q16, Yingli Solar (YGE) posted nearly $218.9 million in total revenues. Analysts estimate that it will report ~$242 million in revenues in 3Q17.

Yingli Solar will announce its 3Q17 earnings results on December 6 before market hours. Since its 2Q17 earnings, its stock price has fallen nearly 13.1%.

JA Solar Holdings (JASO) reported $12.1 million as interest expense for 3Q17 compared to $12.4 million in 2Q17 and $11.3 million in 3Q16.

JA Solar’s total cost of sales for 3Q17 was $575.4 million compared to $778.9 million in 2Q17 and $539.3 million in 3Q16.

In 3Q17, JA Solar reported total revenues of $652.6 million compared to $878.2 million in 2Q17 and $624.3 million in 3Q16.

On November 15, 2017, after market hours, JA Solar Holdings (JASO) announced its 3Q17 results for the quarter ended September 30, 2017.

Canadian Solar’s revenues from the sale of electricity in 3Q17 totaled $9.6 million, which was marginally lower than $9.8 million in 2Q17.

In 4Q17, Canadian Solar expects its solar module shipments to reach ~1.7–1.8 GW.

Canadian Solar (CSIQ) reported its 3Q17 earnings results on November 9. CSIQ declared earnings per share of $0.22, slightly below the analyst consensus estimate of $0.26.

Vivint Solar posted $75.1 million in revenues in 3Q17, up by 82% on a YoY (year-over-year) basis.

SunPower (SPWR) reports its revenue under the power plant, residential, and commercial segments. The latter two segments are together called the distributed generation segments.

SunPower (SPWR) announced its 3Q17 earnings before market hours on November 2. In this series, we’ll examine SunPower’s 3Q17 results in detail and compare the results with analysts’ estimates.

On December 2, 2016, GlobalWafers completed the acquisition of SunEdison Semiconductor for $683.0 million.

SunEdison filed for Chapter 11 bankruptcy on April 21, 2016. It’s currently trading on OTC (over-the-counter) markets under the ticker SUNEQ.

Relative valuation PE (price-to-earnings) and EV-to-EBITDA multiples are commonly used to determine relative valuation. The forward PE multiple considers a company’s equity based on earnings forecasts for the next 12 months. On September 29, 2017, First Solar’s forward PE multiple was reported to be 21.9x. This PE multiple was higher than JA Solar’s (JASO) 9.1x and Canadian Solar’s […]

Debt profile As of December 31, 2016, First Solar (FSLR) had total debt of $188.4 million, lower than its debt of $289 million at the end of 2015. The company’s debt is denominated in various currencies, including the US dollar, Malaysian ringgit, and euros. Credit metrics With a net worth of over $5 billion and $555.8 […]

Pre-tax loss First Solar’s (FSLR) pretax loss in 2016 was $471.7 million, compared with a profit of $519.8 million in 2015. The loss could be attributed to the huge $729 million restructuring pre-tax charges faced by the company in the fourth quarter of 2016. Net loss in 2016 First Solar reported a net loss of $358.0 […]

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 […]

Revenue trend First Solar’s (FSLR) revenue is primarily from turn-key projects, project maintenance, project sales, PV (photovoltaic) module sales to third parties, and PPAs (power purchase agreements) for sale of electricity. In this part, we’ll examine First Solar’s financial performance. As we discussed previously, First Solar has two main business segments: Components and Systems. The design, […]

High customer concentration In 2016, First Solar (FSLR) sold solar modules to customers in the United States, India, and the United Arab Emirates. Approximately 23% of its total revenue was from third-party module sales. The majority of First Solar’s customer base is in the United States, which makes up to more than 80% of total […]

India’s rising electricity demand According to the EIA’s (U.S. Energy Information Administration) 2017 International Energy Outlook, India’s electricity generation is expected to increase by 3.2% per year through 2040, to meet increasing electricity demand in rural areas. Solar outlook Even though coal is the primary fuel used for electricity generation in India, the focus on renewable […]

The Americas The US PV (photovoltaic) market made up ~83% ($2.9 billion) of First Solar’s (FSLR) revenue. The United States has typically been First Solar’s largest market, and where many of its prominent projects and customers are located. First Solar has completed the construction of Del Sur, a 26 MW (megawatt) solar project in Honduras. It commenced […]

The California Flats project On August 22, 2017, First Solar (FSLR) sold its 280-megawatt (or MW) California Flats project to Switzerland-based asset management company Capital Dynamics for an undisclosed amount. The PV power station is spread across 2,900 acres of ranch land in Monterey County in southeast California. The project is still under construction. What […]

Operating segments Previously, we looked at First Solar’s (FSLR) history. The photovoltaic module manufacturer operates two business segments: Components and Systems. The Components segment First Solar is a manufacturer of solar (TAN) photovoltaic (or PV) modules. First Solar also designs and sells these modules. They manufacture thin-film PVs, in which the semiconductor material used is […]

First Solar (FSLR) produces solar energy equipment. In this series, we’ll look at its performance and the outlook for the industry.

On September 7, 2017, Ashland (ASH) announced that it would increase the prices of 1-4 Butanediol and other derivative products.

Extreme climate change events hamper productivity, thus affecting industries such as agriculture, fishing, energy, trade, transportation, and tourism.

The S&P 500 Information Technology sector fell 0.87% on December 28. NVIDIA (NVDA) and First Solar (FSLR) were the top losers.

As of December 9, 2016, among its major peers, Yingli Solar had the highest forward EV-to-EBITDA multiple of 14.3x.

SunPower expects to incur about $225 million–$275 million in restructuring charges as part of closing its Philippine-based Fab 2 manufacturing facility.

The market cheered SunPower’s restructuring initiatives. The initiatives are expected to reduce the company’s costs and improve its future margins.

In 3Q16, Trina Solar (TSL) reported a gross profit of $125.6 million compared to $176.3 million in 2Q16. On a YoY basis, the company’s gross profit fell nearly 9.0%.

Trina Solar (TSL) had a total module shipment guidance of 1.55–1.65 GW (gigawatts) for 3Q16. However, it reported 1.36 GW of total solar (TAN) module shipments.

Following its 3Q16 results, Canadian Solar revised down its US GAAP revenue guidance for 2016 to $2.8 billion–$2.9 billion.

Canadian Solar posted mixed earnings for 3Q16. It reported EPS (earnings per share) of $0.27 compared to the analyst consensus of $0.24.

On November 16, 2016, First Solar (FSLR) announced an update on its Series 6 product transition and revised its fiscal 2016 guidance.

Canadian Solar’s interest expenses fell considerably in 2Q16 to $11.9 million from $16.1 million at the end of 1Q16.

Canadian Solar (CSIQ) is set to announce its 3Q16 earnings results on November 21, 2016, before market hours.

First Solar’s adjusted EBITDA for 3Q15 came in at $466 million. For 3Q16, analysts expect First Solar’s adjusted EBITDA to be around $120 million.

SunPower (SPWR) reported about $380 million in consolidated revenue for 3Q15. Analysts estimate that the company will report revenue of $778 million in 3Q16, which is close to a 105% increase on a year-over-year basis.

Of the 21 analysts covering SunPower Corporation (SPWR) stock, seven analysts gave the company a “buy” rating. Thirteen analysts rated it a “hold,” and one analyst rated the stock as a “sell” on October 18, 2016.