From MarketWatch:
First Solar soars to 2 1/2-year high on earnings guidance
- Bloomberg
- First Solar’s Desert Sunlight Solar Farm in Calif.
From First Solar, Inc:
First Solar Inc. shares soared to their highest level since September 2011 on Wednesday as investors applauded better-than-expected earnings guidance and early success in its strategic switch to large-scale power plants.
First Solar said its recent partnership with General Electric Co. has started to bear fruit: The two companies will cooperate to develop a cheaper and more efficient utility-scale solar power plant design.
Shares recently were up 21% to $69.22, adding to earlier gains. The stock hit a record high of $311.14 in May 2008.
(Update: the closing price of $69.40 a share was the highest for First Solar since Sept. 27, 2011, and volumes were the highest since April.)
Shares of First Solar have climbed 26% so far this year and 149% in the past 12 months. Wednesday’s enthusiasm also boosted trading volume: Shares changed hands at the fastest clip since November.
First Solar has pivoted to developing large-scale solar plants and away from manufacturing solar panels, where margins have shrunk. Earlier Wednesday, it said it expects full-year earnings between $2.20 and $2.60 a share, and between $4.50 and $6 in 2015. Net sales for 2014 will reach as much as $4 billion, it added.
The company reported earnings of $3.70 a share and sales of $3.3 billion in 2013.
The partnership with GE, announced last year, had some analysts skeptical, said Shyam Mehta, a solar analyst with GTM Research — himself included. Wednesday’s announcement, however, shows it was valuable for First Solar, as a less-expensive utility-scale solar power plant design gives the company a competitive edge, he added....MORE
First Solar, Inc. (FSLR) today announced full-year 2014 guidance
as well as summary financial targets through 2016.
For 2014, First Solar expects net sales of $3.7 to $4.0 billion. Consolidated gross margin is expected to be between 16 and 18 percent. Diluted earnings per share is expected to be between $2.20 and $2.60, and consolidated operating income is expected to be between $270 and $320 million. The Company expects to generate between $250 to $450 million of operating cash flow and plans for approximately $300 to $350 million in capital expenditures in 2014.
In addition to the 2014 detailed guidance, the Company also provided a summary outlook for 2015 and 2016 as follows:
2015 Target 2016 Target Net Sales $3.8 to $4.3Billion $3.8 to $4.5Billion Earnings Per Fully Diluted Share $4.50-$6.00 $3.50-$5.00 Operating Cash Flow $300 to $600Million $800Million to $1.3Billion
