Hanwha Q CELLS (HQCL) Reports Q1 EPS of $0.37, Revenues Beat; Offers 2Q Revenue Outlook Below Consensus

Hanwha Q CELLS (NASDAQ: HQCL) reported Q1 EPS of $0.37, versus $0.14 reported last year. Revenue for the quarter came in at $443 million versus the consensus estimate of $438.4 million.

First Quarter 2018 Highlights

• Net revenues were $443.0 million, compared with $636.2 million in the fourth quarter of 2017 and $432.0 million in the first quarter of 2017.
• Gross margin was 17.8%, compared with 8.6% in the fourth quarter of 2017 and 13.8% in the first quarter of 2017.
• Operating income was $33.1 million, compared with operating loss of $33.4 million in the fourth quarter of 2017 and operating income of $28.3 million in the first quarter of 2017.
• Net income attributable to Company's ordinary shareholders was $31.0 million, compared with net loss of $53.7 million in the fourth quarter of 2017 and net income of $17.6 million in the first quarter of 2017.
• Income per fully diluted American Depositary Share ("ADS" and each ADS represents 50 of the Company's ordinary shares) was $0.37, compared with loss per fully diluted ADS of $0.65 in the fourth quarter of 2017 and income per fully diluted ADS of $0.21 in the first quarter of 2017.

Business Outlook

Second Quarter and Full Year 2018 Guidance

For the second quarter of 2018, the Company estimates net revenues in the range of $490 to $510 million.

For the full year 2018, the Company provides the following guidance:

• Total module shipments in the range of 5,600 to 5,800 MW, revised from its initial guidance of 6,000 to 6,200 MW.
• Capital expenditures of approximately $145.0 million for manufacturing technology upgrades and certain R&D related expenditures.

GUIDANCE:

Hanwha Q CELLS sees Q2 2018 revenue of $490-510 million, versus the consensus of $632.2 million.

For earnings history and earnings-related data on Hanwha Q CELLS (HQCL) click here.

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