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Tuesday, May 7
First Solar (FSLR -8.6%) dives as the sell-side provides a tepid response to its Q1...
First Solar (FSLR -8.6%) dives as the sell-side provides a tepid response to its Q1 report, which featured a big gross margin drop to 22.4% (blamed on rev. recognition timing and construction delays, and a lower utilization rate). Needham (Hold) argues the numbers didn't do much to improve visibility, and thinks FSLR's 2014/2015 targets "look aggressive." Likewise, Stifel (Hold) thinks much of FSLR's 5.5GW pipeline is early-stage, and doesn't think the company's deal close rate is improving. On the earnings call, management talked of achieving a sustainable gross margin of 15%-20% on new projects. Shares remain up 41% YTD.