First Solar YieldCo Is 'No Guarantee,' Expert Says

Speaking to Benzinga Thomas Carr, aka Dr. Stoxx commented that investors are "celebrating"

and

YieldCo announcement despite the fact that there is no guarantee a spin-off will happen. "There is a lot of red tape to work through first and, in fact, First Solar's CEO was out just last November saying there would be no YieldCo merger after previously saying there would be," Carr said. "Regardless, investor reaction to the news now means that First Solar is really going to have to beat big when it announces earnings on Tuesday." The expert added that expectations for a beat are "high" given the recent execution of three utility-scale projects and the expansion of the company's global footprint. Bottom line, anything short of a big beat could generate defensive selling and profit taking.