First Solar (FSLR) is set to report earnings tonight after the close with a conference call to follow at 4:30pm ET. FSLR reports at 4:05pm.

Current Capital IQ consensus stands at EPS of $0.55 on Revenues of $862 mln.

The FSLR revenue recognition model makes it extremely difficult for analysts to provide accurate quarterly estimates.  The company has been able to handily beat EPS expectations by an average of $1.03. Revenue has been a little less friendly with two big misses and three big beats over the past five quarters.

The annual projections remain the primary focus for the underlying health of the company and that is where we will be looking to judge the overall performance and outlook. Shares of FSLR have had a difficult 2016. The stock got out of the gates strong hitting a two year high of $74.29 on March 18. But the shares have tumbled 33% since that high water mark.

2016 Guidance

  • Net Sales $3.8-4.0 bln was reaffirmed in Q1
  • Gross Margin 18-19% (Prior 17-18%)
  • Operating Expenses $380-400 mln (Reaffirmed)
  • Operating Income $300-370 mln (Prior $260-330 mln)
  • EPS $4.10-4.50 (Prior $4.00-4.50)
  • Net Cash Balance $1.9-2.2 bln (Reaffirmed)
  • Operating Cash Flow $500-700 mln (Prior $400-600 mln)
  • CapEx $300-400 mln (Reaffirmed)
  • Shipments 2.9-3.0 GW (Reaffirmed)


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