First Solar posted diluted EPS of $1.10 and $950 million in revenues. In the same period a year ago, the company reported EPS of $0.64 on revenue of $755.2 million. Thomson Reuters had consensus estimates for EPS of $0.56 and $837.95 million in revenue.
First Solar even guided its full-year 2014 EPS higher, from a range of $2.20 to $2.60 to a new range of $2.40 to $2.80, well above the consensus estimate of $2.49. The company also raised its estimate of operating income from a range of $270 million to $320 million to a new range of $290 million to $340 million. The operating margin is expected in a range of 17% to 18%.
On every front, the company made a comeback. Costs were lower, sales were high and profits were not battered by restructuring or asset impairment charges. The issue is that revenues and profits are subject to timing of payments, and First Solar received a large payment in the first quarter that will not be duplicated in the second quarter.
In its conference call, First Solar said second-quarter EPS would be “significantly lower” than the current consensus estimate of around $0.60 a share due to timing of sales. However, “the remainder of earnings for the year largely be reflected in the second half of the year and we’ll see consensus estimates for those periods.” Investors definitely took a “What have you done for me lately?” attitude on the stock Wednesday.
The company’s CEO said:
We delivered strong earnings in the first quarter and are increasing our financial guidance for the year based on these results. We have also made significant progress in new bookings and continue to execute on our technology roadmap.
Shares were down about 1.5%, at $66.31 in a 52-week range of $35.59 to $74.84. Thomson Reuters had a consensus analyst price target of around $63.70 before the report.
ALSO READ: Earth Day’s Reckoning for Solar Power
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
