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.
Fundamentals and Highlights (Sources cited below article)
- 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:
- 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).
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.
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.