First Solar Inc (NASDAQ:FSLR) on Thursday upgraded its full-year forecast for some key financial metrics, saying it now expects earnings per share (EPS) of between USD 1.55 (EUR 1.33) and USD 2.20.
The thin-film module maker and solar project developer said it has raised its guidance for 2017 as a result of improved operational performance, increased visibility into certain project sales and a discrete tax benefit in the second quarter.
The following table shows First Solar’s new GAAP forecast for 2017 as compared to guidance provided in May.
| 2017 Guidance (in USD) |
Prior GAAP |
Current GAAP |
| Net Sales |
2.85bn - 2.95bn |
3bn - 3.1bn |
| Gross Margin % |
12.5% -14.5% |
17.0% - 18.0% |
| Operating Expenses |
360m - 405m |
370m - 395m |
| Operating Income |
(25m) - 40m |
115m - 180m |
| Earnings per Share |
(0.30) - 0.40 |
1.55 - 2.20 |
| Net Cash Balance |
1.5bn - 1.7bn |
2.1bn - 2.3bn |
| Operating Cash Flow |
350m - 450m |
850m - 950m |
| Capital Expenditures |
525m - 625m |
400m - 500m |
| Shipments |
2.4 GW to 2.6 GW |
2.6 GW to 2.7 GW |
Below is also the updated 2017 non-GAAP forecast.
| In USD |
Prior Non-GAAP |
Current Non-GAAP |
| Operating costs |
320m - 340m |
330m - 340m |
| Operating Income |
40m - 80m |
170m - 220m |
| Earnings per share |
0.25 - 0.75 |
2.00 - 2.50 |
For the second quarter of 2017, First Solar registered a net profit of USD 52 million, returning from a USD-11.4-million loss a year earlier. Basic and diluted EPS stood at USD 0.50, against a loss of USD 0.11. The improved results were attributed mainly to higher gross margins and a discrete income tax benefit but were impacted by pre-tax restructuring and asset impairment charges, First Solar said. The company saw its sales in the period drop to USD 623 million from USD 1.02 billion a year back due to falling systems sales.
First Solar closed the first half of 2017 with a net profit of USD 61.1 million, down from USD 184.2 million a year ago. The decrease was caused by a drop in sales to USD 1.52 billion from USD 1.89 billion.
In the autumn of 2016 First Solar announced a move from Series 4 production to Series 6 production over the course of 2017 and 2018, whilst cancelling its Series 5 product. The company’s CEO Mark Widmar said on Thursday that “ efforts to ensure the manufacturing and market readiness of Series 6” is a top priority. The first Series 6 equipment is currently being installed at the First Solar’s Ohio factory.
(USD 1.0 = EUR 0.855)
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First Solar PV plant. Source: First Solar Inc
