Investors Hope First Solar (FSLR) Can Show Them the Light in Q3

October 28, 2009 3:10 PM EDT

First Solar (NASDAQ: FSLR) is trading up this afternoon ahead of their third quarter earnings report after the market closes today, October 28, 2009. The stock is up $1.40, about 0.90%, to $151.62.

First Solar is expected to report a Q3 EPS of $1.74 and revenues of 528.78 million. Last quarter, First Solar topped Street estimates when it reported a Q209 EPS of $2.11 (estimated $1.62) and revs of $525.90 million ($459.12 estimated). During the third quarter 08, First Solar reported above the Street again, posting a Q308 EPS of $1.20 ($1.01 estimated) and revenues of $348.70 ($339.29 estimated).

FSLR has been relatively flat through the quarter, down about 1.8% since their Q209 earnings report. YTD, First Solar is up about 10%. As a reference, the Technology sector is up 30% YTD.

Data from Bloomberg shows that 17 analysts have a Buy rating on First Solar, 18 have a Hold, and 4 have a Sell. The analyst price target is $160.08. The analyst high price target is $250, and the low is $86.

Collins Stewart believes that First Solar will report $537 million in revs and an EPS of $2.01, both above market consensus. The firm thinks that the third quarter has been a strong solar market particularly in Germany. Collins reports that FSLR is sold out for Q309 and Q409, with stabilizing prices. The firm maintains their Hold rating, citing concerns over pricing trends. The firm thinks that First Solar may have to reduce their prices to stay competitive.

Kaufman maintains their Sell rating on First Solar, but raises their EPS estimate to $1.71, and wants revenues of $526 million. Kaufman has a price target of $86 on the company. The firm mentions the strong German solar market as well in their analysis. However, the firm notes that First Solar put many projects on hold in the beginning of 2009, and rushed to beat the feed-in-tariff, which would have been lowered or potentially eliminated.

Wedbush Morgan reiterated their Outperform rating and increased their price target to $170 from $160.

Janney Montgomery initiated coverage on First Solar with a Buy rating, and a price target of $185. Janney states that First Solar has a cost advantage over its competitors. First Solar's cost per watt is $0.87, compared to over $2 for competitors.

First Solar is expected to release their Q309 earnings at 4:00pm (EDT) today, October 28, 2009. Stay tuned to Streetinsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.

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• Citi
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