Earnings Preview: First Solar, Skyworks, Microchip Technology Report Thursday

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 |  Includes: FSLR, MCHP, SWKS
by: Robert Weinstein

First Solar, Inc. (NASDAQ:FSLR) is expected to report earnings for last fiscal quarter after the closing bell on November 3, 2011.

First Solar, Inc. manufactures and sells solar modules using a thin-film semiconductor technology. It also designs, constructs, and sells photovoltaic solar power systems. The company was founded in 1999 and is headquartered in Tempe, Arizona. FSLR trades an average of 5.4 million shares per day.

52-Week High: $175.45
52-Week Low: $42.50
Book Value: $46.61
Float Short: 35.40%

Analysts are expecting an improvement of $1.07 in earnings per share compared to last quarter's results of $2.25. A beat of $3.32 per share, will top the estimated mean earnings. Analyst estimates range between $2.21 and $4.66 per share.

The P/E ratio has been discounted, as the current trailing twelve months (ttm) P/E ratio is 8.2, while the forward P/E ratio is now 6.6. It appears based on the lower PE that investors are pricing in less growth.

From a month ago, the stock has decreased in price -14.04%, and changing from last year at this time -63.85%. When comparing to the S&P 500, the year-to-date difference is -61.63%. For the same fiscal period year-over-year, revenue has improved to $2.56 billion for 2010 vs. $2.07 billion for 2009. The bottom line has rising earnings year-over-year of $664.20 million for 2010 vs. $640.14 million for 2009. The company's earnings before income and taxes are rising, with an EBIT year-over-year of $748.90 million for 2010 vs. $679.62 million for 2009.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for FSLR Click to enlarge

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 1.01 B $ 1.01 B $ -5.40 M -0.53%
Jun-11 $ 581.69 M $ 532.77 M $ -48.92 M -8.41%
Mar-11 $ 546.25 M $ 567.29 M $ 21.04 M 3.85%
Dec-10 $ 644.95 M $ 609.80 M $ -35.15 M -5.45%
Sep-10 $ 780.09 M $ 797.90 M $ 17.81 M 2.28%
Click to enlarge
M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results FSLR Click to enlarge

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for FSLR:

paid2trade.com short interest tool. The total short interest number of shares for FSLR Click to enlarge

The number of days to cover short interest based on average daily trading volume for FSLR.

paid2trade.com number of days to cover short interest based on average daily trading volume for FSLR Click to enlarge

Skyworks Solutions, Inc. (NASDAQ:SWKS) is anticipated to report earnings after the closing bell on November 3, 2011.

Skyworks Solutions, Inc., together with its subsidiaries, offers analog and mixed signal semiconductors worldwide. The company was founded in 1962 and is headquartered in Woburn, Massachusetts. SWKS trades an average of 5 million shares per day.

52-Week High: $37.82
52-Week Low: $16.34
Book Value: $8.23
Float Short: 5.16%

On average, analysts are expecting a drop of $-0.01 in earnings per share compared to last quarter's results of $0.49. Investors will be looking to see a number north of $0.48 per share, based on the earnings estimates. Analyst estimates range between $0.45 and $0.53 per share.

The P/E ratio has come down, as the current trailing twelve months (ttm) P/E ratio is 18, while the forward P/E ratio is now 11.7. A falling PE ratio may signal a bargain for astute investors, or maybe time to move on.

Looking at the price movement over the last month, the stock has moved higher in price 16.80%, and changing from last year at this time -13.57%. When comparing to the S&P 500, the year-to-date difference is -30.57%.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $1.07 billion for 2010 vs. $802.58 million for 2009. The bottom line has rising earnings year-over-year of $137.29 million for 2010 vs. $94.98 million for 2009. The company's earnings before income and taxes are rising with an EBIT year-over-year of $199.74 million for 2010 vs. $71.70 million for 2009.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for SWKS Click to enlarge

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Jun-11 $ 346.34 M $ 356.08 M $ 9.74 M 2.81%
Mar-11 $ 316.77 M $ 325.41 M $ 8.64 M 2.73%
Dec-10 $ 333.98 M $ 335.12 M $ 1.14 M 0.34%
Sep-10 $ 310.01 M $ 313.28 M $ 3.27 M 1.05%
Jun-10 $ 269.75 M $ 275.37 M $ 5.62 M 2.08%
Click to enlarge
M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results SWKS Click to enlarge

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for SWKS:

paid2trade.com short interest tool. The total short interest number of shares for SWKS Click to enlarge

The number of days to cover short interest based on average daily trading volume for SWKS.

paid2trade.com number of days to cover short interest based on average daily trading volume for SWKS Click to enlarge

Microchip Technology Inc. (NASDAQ:MCHP) is anticipated to report earnings after the closing bell on November 3, 2011.

Microchip Technology Incorporated engages in the design, development, manufacture, and market of semiconductor products for embedded control applications. The company was founded in 1989 and is headquartered in Chandler, Arizona. MCHP trades an average of 2.9 million shares per day.

52-Week High: $41.50
52-Week Low: $29.30
Book Value: $9.86
Float Short: 12.06%

On average, analysts are expecting a drop of $-0.07 in earnings per share compared to last quarter's results of $0.55. The number to beat is $0.48 per share, based on the estimated mean earnings.

In the last month, the stock has increased in price 18.90%, and moving in price 12.43% from one year ago. The stock is performing better than the overall market with a relative gain. When comparing to the S&P 500, the year-to-date difference is 6.13%.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $1.49 billion for 2011 vs. $947.73 million for 2010. The bottom line has rising earnings year-over-year of $418.95 million for 2011 vs. $217.01 million for 2010. The company's earnings before income and taxes are rising, with an EBIT year-over-year of $474.18 million for 2011 vs. $244.96 million for 2010.

Here is a look at the fiscal year revenue.

paid2trade.com revenue gross bar chart for MCHP Click to enlarge

Gross reported revenue compared to the mean estimate (rounded).

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Jun-11 $ 375.52 M $ 374.51 M $ -1.01 M -0.27%
Mar-11 $ 373.67 M $ 379.98 M $ 6.31 M 1.69%
Dec-10 $ 361.82 M $ 367.82 M $ 6.00 M 1.66%
Sep-10 $ 341.94 M $ 382.27 M $ 40.33 M 11.79%
Jun-10 $ 318.58 M $ 302.40 M $ -16.18 M -5.08%
Click to enlarge
M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results MCHP Click to enlarge

Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for MCHP:

paid2trade.com short interest tool. The total short interest number of shares for MCHP Click to enlarge

The number of days to cover short interest based on average daily trading volume for MCHP.

paid2trade.com number of days to cover short interest based on average daily trading volume for MCHP Click to enlarge

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.