First Solar Tumbles On Revenue Miss, Leadership Transition

Shares of First Solar, Inc. FSLR were trading down more than 4 percent in Wednesday’s after-hours session, following the announcement of the company’s Q1 results.

The PV solar energy solutions provider posted earnings of $1.66 per share, $0.73 above the Street’s consensus. However, revenue of $848.5 million missed expectations by $118.13 million, up 80.8 percent year-over-year.

For the full fiscal year, management said it expects EPS of $4.10 to $4.50, versus consensus at $4.30, and up from a prior guidance of $4.00 to $4.50. Revenue is still anticipated to come in between $3.8 billion and $4 billion. Consensus currently stands at $3.96 billion.

Leadership Transition

On top of its first quarter financial results, First Solar announced its CEO James Hughes, who is stepping down effective June 30, will be replaced by CFO Mark Widmar. On July 1, Widmar will not only start serving as the company’s CEO, but also as a Director in its Board.

For his part, Hughes will continue to support the firm in an advisory role and will remain on the Board.

Michael J. Ahearn, Chairman of First Solar’s Board, said, “As we enter a new phase of growth and development for the company, we believe that Mark’s proven leadership and expertise make this an ideal time for him to take the helm. Under Jim’s astute guidance, First Solar achieved the strongest technology position in our history, with record bookings of new business and unparalleled financial strength in the industry. We are grateful for Jim’s many contributions to First Solar, and we look forward to benefiting from his continued involvement as an advisor and director.”