First Solar (FSLR) Plunges Despite Q4 'Beat', Now May Be Time For That Steady Rise To Resume
Tweet
Share
E-mail
Get Alerts FSLR Hot Sheet
Price: $214.28 +0.10%
Rating Summary:
37 Buy, 18 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
37 Buy, 18 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
First Solar, Inc. (Nasdaq: FSLR) is taking it on the chin today following seemingly solid fourth quarter earnings results after the close. With the stock up 27 percent year-to-date, the sell-off may not come as a surprise for some - but investors are asking what now.
First Solar reported Q4 EPS of $1.80, $0.04 better than the analyst estimate of $1.76. Revenue for the quarter came in at $609.8 million, below the consensus estimate of $647.8 million. The company sees FY2011 EPS up about 25% to $9.25-$9.75, above the consensus of $9.10.
Wall Street was mostly positive on the results, although that optimism has not resonated in the share price...yet.
Goldman Sachs said while they expect a skittish short-term stock price, they see another 15% upside as cost reductions are on plan, the near-term demand picture is intact and the company's pipeline buffer is growing. Goldman expects street EPS estiamtes to move higher and the stock to follow. They lifted their price target from $165 to $190 and maintained a Conviction Buy rating.
On the lower than expected sales, UBS said it was likely due to First Solar's decision to replace more of its non-conforming modules at customer sites in 4Q10 as well as isolated pushouts in Ontario due to weather and the U.S.. Some positive takeaways from the quarter were: gross margin increased 840bps q/q to 48.7% despite the 24% decline in sales, grew its North America utility scale pipeline to 2.4 GW-ac, guided for 400 MW of modules into their North America pipeline in 2011 but could ship as much as 700 MW, views India as a key solar module growth market in 2011 and estimates it can represent about 8% of its total sales, up from 1% in 2010, maintains a solid balance sheet. UBS maintained their Buy rating raised their price target from $175 to $180.
Shares of First Solar are down 4.7% today to $156.95.
First Solar reported Q4 EPS of $1.80, $0.04 better than the analyst estimate of $1.76. Revenue for the quarter came in at $609.8 million, below the consensus estimate of $647.8 million. The company sees FY2011 EPS up about 25% to $9.25-$9.75, above the consensus of $9.10.
Wall Street was mostly positive on the results, although that optimism has not resonated in the share price...yet.
Goldman Sachs said while they expect a skittish short-term stock price, they see another 15% upside as cost reductions are on plan, the near-term demand picture is intact and the company's pipeline buffer is growing. Goldman expects street EPS estiamtes to move higher and the stock to follow. They lifted their price target from $165 to $190 and maintained a Conviction Buy rating.
On the lower than expected sales, UBS said it was likely due to First Solar's decision to replace more of its non-conforming modules at customer sites in 4Q10 as well as isolated pushouts in Ontario due to weather and the U.S.. Some positive takeaways from the quarter were: gross margin increased 840bps q/q to 48.7% despite the 24% decline in sales, grew its North America utility scale pipeline to 2.4 GW-ac, guided for 400 MW of modules into their North America pipeline in 2011 but could ship as much as 700 MW, views India as a key solar module growth market in 2011 and estimates it can represent about 8% of its total sales, up from 1% in 2010, maintains a solid balance sheet. UBS maintained their Buy rating raised their price target from $175 to $180.
Shares of First Solar are down 4.7% today to $156.95.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- DA Davidson Reiterates Buy Rating on Box, Inc. (BOX) on Secular Tailwinds for Demand
- Bernstein SocGen on Meta Platforms Inc. (META): 'Risk-reward remains attractive'
Create E-mail Alert Related Categories
Analyst Comments, Earnings, Insiders' BlogRelated Entities
UBS, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
