First Solar (FSLR) Earnings Previewed at Baird; Fundamentals Strengthening But no Guidance Raise Yet

Baird analyst Ben Kallo, published a preview of First Solar's (NASDAQ: FSLR) upcoming earnings call on October 29. He expects a positive reaction since the company is sold out of 2016 capacity, continues to make efficiency gains, and remains the cost leader with a solid balance sheet.

Estimates are in line with consensus except the sharecount. Revenue of $1,160M vs. consensus of $1,111M, net income of $170M vs. $167M and non-GAAP EPS of $1.68 vs. $1.64.

During Q3, FSLR sold a controlling interest in its Desert Stateline power plant in CA to Southern Power, a subsidiary of Southern Company. The 300 MW project is expected to be fully operational in Q3:16 and the power will be sold to Edison International (EIX; Not Rated) in a 20-year PPA. The deal is FSLR’s fourth with SO.

Things to focus on during the call is increasing utilization rates and production volumes to meet its 2016 demand.

They continue to believe numbers are likely too low for 2016 but do not expect guidance until Q4 results or FSLR’s analyst day in early 2016.

No change to the firm's Outperform rating or $69 PT.

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 $50.57 yesterday.

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