Preview of First Solar's (FSLR) Q2 Earnings: Analysts Mixed

First Solar (Nasdaq: FSLR) is set to report its Q2 results this afternoon after the market closes. The Street is currently expecting quarterly EPS of $1.62 on sales of $459.12 million. Compared to the same quarter last year, these levels would represent a 90% increase in earnings and a jump of about 117% on the sales number. Looking at possible FY09 guidance, the Street is expecting EPS of $7.06 on sales of $1.91 billion.

According to our earnings records, First Solar usually reports just after the market closes, before 4:10pm ET.

Several analysts are out with their own previews of First Solar's Q2 results, with sentiment seemingly neutral-to-bearish:

• In a report entitled "Another Rabbit Out the Hat Appears Increasingly Difficult", an analyst at Hapoalim Securities said he is skeptical that First Solar will be able to meet Wall Street's still-lofty expectations. Maintaining a Sell rating and $90 price target, the analyst believes that -- in light of a more optimistic sentiment on the back of recent SunPower results -- the Street is overestimating Q2 shipments of about 250 MW, which would be up more than 136MW from the same quarter last year. The Hapoalim analyst also reminded investors that "the effect of FSLR’s C1Q09 March price cut, as well as some of the May price cut, will be felt" this quarter. The firm adjusted its Q2 EPS estimate from $1.13 to $1.58, still below the Street consensus. For CY09, Hapoalim sees EPS of $5.85, up from $5.74 previously.
  
• Collins Stewart believes First Solar will report a "solid" Q2, but believes that downside to pricing trends still remain a risk. The firm maintains a Hold rating.
  
• Analysts at Piper Jaffray expect First Solar to report "in-line to better" quarter, maintaining an Overweight rating and $175 price target. The firm calls the euro exchange rate a "tailwind" and believes that First Solar will "bring down its cost in the quarter as a result of greater Malaysian manufacturing and cost reductions." Piper sees FSLR reporting Q2 GAAP EPS of $1.67 on sales of $454 million.
  
• in another decidedly bearish report, Kaufman Bros. reiterated its Sell rating and $86 price target ahead of the earnings tonight. The firm said "this quarter or next may be the best", implying a kind of "this is all there is to it" attitude.

Shares of First Solar are up about 2.4% to $172 today, moving higher with the broader markets.

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