Needham & Company on First Solar (FSLR); Painful, But Necessary Restructuring; Cutting Estimates on Lower Volumes
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Price: $225.56 --0%
Rating Summary:
37 Buy, 18 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
Rating Summary:
37 Buy, 18 Hold, 4 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 11 | New: 19
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Needham & Company maintains a 'Hold' on First Solar (NASDAQ: FSLR).
Analyst, Y. Edwin Mok, said, "We estimate FSLR will reduce its production capacity by 792MW, or 34% of its total capacity. We believe shutting lines will improve overall utilization and lower costs. Additionally, headcount reductions should add $0.46-$0.57/sh to 2013 EPS. FSLR expects annualized savings of $100-120MM when the restructuring is completed."
"We are lowering our revenue estimates on lower volume, but slightly increase our non-GAAP EPS estimates to reflect the cost benefits of improved utilization and lower OPEX. We raise our 2012E EPS from $3.73 to $3.92 and 2013E from $1.95 to $2.39. However, we note that our estimates remain substantially below consensus 2012/13 EPS of $4.05/$4.38."
For an analyst ratings summary and ratings history on First Solar click here. For more ratings news on First Solar click here.
Shares of First Solar closed at $22.96 yesterday.
Analyst, Y. Edwin Mok, said, "We estimate FSLR will reduce its production capacity by 792MW, or 34% of its total capacity. We believe shutting lines will improve overall utilization and lower costs. Additionally, headcount reductions should add $0.46-$0.57/sh to 2013 EPS. FSLR expects annualized savings of $100-120MM when the restructuring is completed."
"We are lowering our revenue estimates on lower volume, but slightly increase our non-GAAP EPS estimates to reflect the cost benefits of improved utilization and lower OPEX. We raise our 2012E EPS from $3.73 to $3.92 and 2013E from $1.95 to $2.39. However, we note that our estimates remain substantially below consensus 2012/13 EPS of $4.05/$4.38."
For an analyst ratings summary and ratings history on First Solar click here. For more ratings news on First Solar click here.
Shares of First Solar closed at $22.96 yesterday.
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