First Solar 3rd-Quarter Net Soars on Revenue Jump
Post# of 94265
Posted On: 11/01/2013 9:05:44 AM
First Solar 3rd-Quarter Net Soars on Revenue Jump
By John Kell
First Solar Inc.'s (FSLR) third-quarter profit more than doubled as the solar-panel maker's top line soared higher due to revenue from a California solar plant and project sales in Canada.
Results for the quarter easily exceeded Wall Street's expectations. First Solar's shares were halted ahead of the news. They closed down 2.1% to $50.31 on Thursday but have still jumped 63% in 2013.
Looking ahead, First Solar now sees a full-year profit of $4.25 to $4.50 a share on $3.4 billion to $3.6 billion in revenue, compared to the August view of $3.75 to $4.25 in per-share earnings on $3.6 billion to $3.8 billion in revenue.
Most solar stocks have rallied recently, which some attribute to greater visibility into future growth and potential earnings improvement. The sector is easily outperforming the broader market in 2013, albeit shares still are trading far under their peak levels as falling prices and global oversupply have pressured the industry.
Results from First Solar, which makes thin-film solar panels and develops and builds large-scale solar-power plants it later sells, are highly dependent on revenue recognition of milestone payments on large projects, resulting in timing fluctuations as to when that revenue is recognized.
First Solar reported a third-quarter profit of $195 million, or $1.94 a share, up from $87.9 million, or $1 a share, a year earlier. Excluding asset impairment charges, adjusted profit totaled $2.28 a share in the latest period.
Net sales jumped 51% to $1.27 billion, reflecting revenue recognized from a solar farm in California, project sales in Canada, and higher volume to third-party module-only customers.
Analysts surveyed by Thomson Reuters expected a profit of 99 cents on $989 million in revenue.
Gross margin widened to 28.8% from 28.4%.
Separately, First Solar disclosed it agreed to sell a 250-megawatt project that's located in Nevada to a business unit owned by NextEra Energy Inc. (NEE). Terms of the deal, which is expected to close early next year, weren't disclosed.
Write to John Kell at john.kell@wsj.com
Order free Annual Report for First Solar, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US3364331070 or call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
By John Kell
First Solar Inc.'s (FSLR) third-quarter profit more than doubled as the solar-panel maker's top line soared higher due to revenue from a California solar plant and project sales in Canada.
Results for the quarter easily exceeded Wall Street's expectations. First Solar's shares were halted ahead of the news. They closed down 2.1% to $50.31 on Thursday but have still jumped 63% in 2013.
Looking ahead, First Solar now sees a full-year profit of $4.25 to $4.50 a share on $3.4 billion to $3.6 billion in revenue, compared to the August view of $3.75 to $4.25 in per-share earnings on $3.6 billion to $3.8 billion in revenue.
Most solar stocks have rallied recently, which some attribute to greater visibility into future growth and potential earnings improvement. The sector is easily outperforming the broader market in 2013, albeit shares still are trading far under their peak levels as falling prices and global oversupply have pressured the industry.
Results from First Solar, which makes thin-film solar panels and develops and builds large-scale solar-power plants it later sells, are highly dependent on revenue recognition of milestone payments on large projects, resulting in timing fluctuations as to when that revenue is recognized.
First Solar reported a third-quarter profit of $195 million, or $1.94 a share, up from $87.9 million, or $1 a share, a year earlier. Excluding asset impairment charges, adjusted profit totaled $2.28 a share in the latest period.
Net sales jumped 51% to $1.27 billion, reflecting revenue recognized from a solar farm in California, project sales in Canada, and higher volume to third-party module-only customers.
Analysts surveyed by Thomson Reuters expected a profit of 99 cents on $989 million in revenue.
Gross margin widened to 28.8% from 28.4%.
Separately, First Solar disclosed it agreed to sell a 250-megawatt project that's located in Nevada to a business unit owned by NextEra Energy Inc. (NEE). Terms of the deal, which is expected to close early next year, weren't disclosed.
Write to John Kell at john.kell@wsj.com
Order free Annual Report for First Solar, Inc.
Visit http://djnweurope.ar.wilink.com/?ticker=US3364331070 or call +44 (0)208 391 6028
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
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