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First Solar (NASDAQ:FSLR) is scheduled to release its 1st quarter 2013 earnings on Monday, May 6th at 4:30 pm ET. Below I have provided an update of the quarter as well as an overview of earnings expectations.

Profile and Estimates

First Solar has a market cap of $4.07 billion and currently trades for $46.44 per share. Shares are up 50.49% YTD and trade 306.30% above their 52-week low of $11.43. Analysts have a mean target price of $34.98 and a median price target of $35.00 on the shares. Eighteen analysts have an average first quarter earnings per share estimate of $0.75 on estimated revenues of $725.26 million. First Solar has beat earnings expectations in each of the last three quarters.

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Fundamentals and Highlights (Sources cited below article)

Positives

  • P/B of 1.1 and D/E of 0.1 are both below the industry averages 1.3 and 0.4 respectively.
  • Revenue growth has averaged 17.7% over the last three years.
  • Recent guidance well above analysts prior expectations. From the announcement:

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Negatives

  • Growth is uncertain and profitability is highly dependent on lowering costs.
  • ROE, ROIC, and ROA have been highly volatile and unimpressive in the past few years. As of last year each were -2.66%, -2.49 and -1.59% respectively.
  • Gross profits have declined in each of the last two years (were $853 million in 2012).

Take Away

Shares are up substantially after the newly issued guidance topped analysts prior expectations. First Solar's management has placed the bar pretty high and I would expect a fairly significant pullback should the company fall short in any way. The company has a long way to go and the recent movement may be premature.

Sources

In addition to the links above, ratios and financial data was sourced from Morningstar.com, which you can find here and here.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.