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Deal timings boost First Solar's Q3 results; 250MW project sold

  • First Solar (FSLR) attributes its blowout Q3 in part to initial revenue recognition for its 550MW Desert Sunlight solar project (California), and from the sale of its 50MW ABW project (Canada).
  • Also helping: Gross margin rose 170 bps Q/Q and 30 bps Y/Y to 28.8%. First Solar has hiked its full-year gross margin guidance range to 24%-26% from 22%-23%.
  • Nonetheless, 2013 operating cash flow guidance has been lowered to $700M-$900M from $800M-$1B. Capex guidance has been lowered to $300M-$350M from $350M-$400M.
  • Along with its Q3 results, First Solar announces it's selling its 250MW Silver State South project (Nevada, previous) to a NextEra Energy (NEE) unit. Terms are undisclosed.
  • Expected future module shipments are now at 2.7GW, up from 2.2GW at the end of Q2 and 2.6GW at the end of 2012. 860MW of incremental bookings were achieved in Q3, partly offset by ~300MW of shipments.
  • Expects future systems/module revenue is at $7.8B, up from $7.6B at the end of Q2 and down from $8B at the end of 2012. Potential opportunities stand at 7.7GW, down 300MW Q/Q.
  • FSLR remains halted, shares resume trading at 4:35PM ET. SPWR +2% AH. SCTY +3.1%.
  • Q3 results, PR, slides
Comments (2)
  • orenb30@gmail.com
    , contributor
    Comment (1) | Send Message
     
    Am I the only one who notice that the cost per watt has been lower significantly from 67 to 59 per watt? is this due to some accounting trick or that they manage to lower the cost of production by 12% during this quarter?
    31 Oct 2013, 05:49 PM Reply Like
  • CGerus
    , contributor
    Comments (2) | Send Message
     
    I think it may be due to surplus
    1 Nov 2013, 08:29 AM Reply Like
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