First Solar, Inc. (NASDAQ: FSLR) is going to have a little bit for bulls and bears alike in its latest earnings report. The leader in solar panels beat earnings at $1.80 EPS versus Thomson Reuters estimates of $1.77 EPS, but the revenues were a tad light on a 5% drop to $610 million versus estimates of $648 million.
The company attributed the soft revenue figure due to timing of system sales and early implementation of 2011 pricing. In short, it likely began honoring discounts sooner than expected. While this was offset by an increase in volume, this underscores the notion that solar prices are falling.
As far as the 2011 profit guidance, that was raised to a range of $9.25 to $9.75 EPS from its prior forecast of $8.75 to $9.50 EPS. Revenue guidance was trimmed from the highs to $3.7 billion to $3.8 billion in annual revenue versus a December forecast for revenues to be $3.7 billion to $3.9 billion for 2011. The company reiterated a $1.0 billion to $1.1 billion cap-ex budget and sees operating cash flow of $1.0 billion to $1.1 billion.
While good demand visibility is present for 2011 from a broader geographic client base, First Solar shares were already pricing in the good news. The stock had closed out 2010 at $130.14 and shares closed today at $164.68. It was of little surprise to see shares down as much as 6.6% at $157.10 in the after-hours session on Thursday as a sell-the-news mentality was taking hold.
For whatever it is worth, First Solar is still above the consensus analyst price target of $157.22 from Thomson Reuters.
JON C. OGG
Travel Cards Are Getting Too Good To Ignore (sponsored)
Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.
We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.
It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.
We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.