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First Solar (FSLR) Q3 Earnings: Stock to Beat Estimates?
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First Solar, Inc. (FSLR - Free Report) is set to report third-quarter 2016 earnings results after the closing bell on Nov 2. Last quarter, the company delivered a positive earnings surprise of 50.00%. Let's see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that First Solar is likely to beat earnings this season because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates, and First Solar has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +1.45%. This is because the Most Accurate estimate stands at 70 cents, while the Zacks Consensus Estimate is pegged slightly lower at 69 cents. This is a meaningful indicator of a likely positive earnings surprise.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: First Solar’s Zacks Rank #3, when combined with a positive ESP, makes us reasonably confident of an earnings beat this quarter.
Conversely, Sell-rated stocks (#4 or #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
During the second-quarter earnings call, the company revealed that it expects restructuring charges of $15.0−$20.0 million to be reflected in the third-quarter results. Again, the balance revenues related to the sale of Southern will be realized in the to-be-reported quarter.
According to company filings, First Solar expects to derive a major portion of its 2016 revenues from the sale of utility-scale projects in North America. Currently, these have been categorized as advanced-stage projects. Earlier, the company had said that it expects to recognize the majority of its revenue from advanced-stage projects in the second half of 2016.
Like other solar majors – SunPower Corp. (SPWR - Free Report) and Vivint Solar Inc. – the booming U.S. solar market is expected to drive top-line growth at First Solar as well.
For the third quarter, the Zacks Consensus Estimate for earnings is 69 cents, reflecting a 79.8% year-over-year decline, with revenues are expected to come in at $966.7 million, representing an approximately 24% decrease.
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First Solar (FSLR) Q3 Earnings: Stock to Beat Estimates?
First Solar, Inc. (FSLR - Free Report) is set to report third-quarter 2016 earnings results after the closing bell on Nov 2. Last quarter, the company delivered a positive earnings surprise of 50.00%. Let's see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
Our proven model shows that First Solar is likely to beat earnings this season because it has the right combination of two key ingredients. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) to be able to beat estimates, and First Solar has the right mix.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, stands at +1.45%. This is because the Most Accurate estimate stands at 70 cents, while the Zacks Consensus Estimate is pegged slightly lower at 69 cents. This is a meaningful indicator of a likely positive earnings surprise.
Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: First Solar’s Zacks Rank #3, when combined with a positive ESP, makes us reasonably confident of an earnings beat this quarter.
Conversely, Sell-rated stocks (#4 or #5) should never be considered going into an earnings announcement, especially when the company is seeing negative estimate revisions.
FIRST SOLAR INC Price and EPS Surprise
FIRST SOLAR INC Price and EPS Surprise | FIRST SOLAR INC Quote
Factors at Play
During the second-quarter earnings call, the company revealed that it expects restructuring charges of $15.0−$20.0 million to be reflected in the third-quarter results. Again, the balance revenues related to the sale of Southern will be realized in the to-be-reported quarter.
According to company filings, First Solar expects to derive a major portion of its 2016 revenues from the sale of utility-scale projects in North America. Currently, these have been categorized as advanced-stage projects. Earlier, the company had said that it expects to recognize the majority of its revenue from advanced-stage projects in the second half of 2016.
Like other solar majors – SunPower Corp. (SPWR - Free Report) and Vivint Solar Inc. – the booming U.S. solar market is expected to drive top-line growth at First Solar as well.
For the third quarter, the Zacks Consensus Estimate for earnings is 69 cents, reflecting a 79.8% year-over-year decline, with revenues are expected to come in at $966.7 million, representing an approximately 24% decrease.
A Peer Release
Sunrun Inc. (RUN - Free Report) is slated to report third-quarter 2016 results on Nov 10. The company has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>