First Solar's profits decline in 9-mo, 2016 guidance updated

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First Solar Inc (NASDAQ:FSLR) saw its third-quarter and nine-month profits decline year-on-year and revised its full-year guidance to reflect the revised sale timing for the 250-MW Moapa and 280-MW California Flats projects.

Details on the solar company’s performance in the first nine months of 2016 are available in the table. EPS stands for earnings per share.

Figures in USD	Q3 2016	Q3 2015	9-mo 2016	9-mo 2015
Net sales	688 million	1.27 billion	2.47 billion	2.64 billion
Operating profit	88.7 million	397.8 million	262.8 million	384.8 million
Net profit	154.15 million	349.3 million	338.1 million	383.3 million
Diluted EPS	1.49	3.41	3.28	3.75

In quarter-on-quarter terms, First Solar’s profitability improved thanks to a foreign tax benefit and because restructuring-related charges stood at only USD 4 million in the Q3, while in Q2 these amounted to USD 86 million.

Net sales were lower than in the prior quarter due to the completion of a number of projects, partially offset by higher module-only sales.

“Our entire fleet module efficiency for the past quarter was 16.5% and our lead line efficiency exited the quarter at 16.9%, demonstrating continued execution on our technology roadmap,” said chief executive Mark Widmar. He added that the firm is pleased with its current year financial performance but “current market conditions are extremely challenging and require us to carefully assess our short and long-term strategic response."

The updated 2016 guidance follows:

Forecast in USD	New GAAP	Old GAAP	New non-GAAP	Old non-GAAP
Net sales	2.8 - 2.9 billion	3.8 - 4 billion	N/A	N/A
Gross margin	25.5-26%	18.5-19%	N/A	N/A
Operating profit	235 - 255 million	205 - 250 million	340 - 370 million	310 - 370 million
Effective tax rate	(5)-(3)%	4-6%	8-10%	16-18%
EPS	3.75 - 3.90	3.65 - 3.90	4.30 - 4.50	4.20 - 4.50
Net cash balance	1.4 - 1.5 billion	1.9 - 2.2 billion	N/A	N/A
Shipments	2.8 - 2.9 GW	2.9 - 3 GW	N/A	N/A

First Solar said the Moapa and California Flats are now expected to be sold in 2017.

(USD 1= EUR 0.901)

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