First Solar reported EPS of just $0.04 in the second quarter, far below the consensus estimate of $0.37. The shortfall was attributed to the timing of when payments are received and booked. In the first quarter of this year, First Solar posted EPS of $1.10 against a consensus estimate of $0.56. In other words, consensus estimates of the company’s EPS are little more than a shot in the dark.
If we look at the results from SolarCity Corp. (NASDAQ: SCTY), which reported results after markets closed Wednesday, the solar installer lost $0.75 a share, about 31% better than analysts had expected. On a GAAP basis, SolarCity posted EPS of $0.19 attributable to the company’s stockholders, but that was overwhelmed by a loss of $0.96 attributed to noncontrolling interests.
Since late March the two stocks have tracked one another except for the periods right after earnings are reported. SolarCity’s results seem to leave a more favorable first impression on investors, but the two stocks eventually converge again. Still, SolarCity’s disappointing report Wednesday could break the pattern.
Short interest in First Solar stock of around 9 million represents about 12% of the company’s float, or three days to cover. Year to date, shares trade about 4.7% higher, but for the past 12 months the stock is down nearly 5.5%. SolarCity is doing little worse year-to-date, down about 8.4%, but better for the trailing 12 months, down just 3.8%. At the mid-October reporting date, some 29% of SolarCity’s stock was short, amounting to more than 15 million shares, or nearly 11% of its total float.
First Solar was trading up about 1.5% in the late morning Thursday, at $57.13 in a 52-week range of $47.04 to $74.84. SolarCity traded down more than 4% at $52.22, in a 52-week range of $42.38 to $88.35.
ALSO READ: SunPower Earnings Weighed Down by Margin Slide, Soft Outlook
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
