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First Solar Trades Higher After Strong Guidance Report

First Solar Trades Higher After Strong Guidance Report
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First Solar, Inc. (NASDAQ: FSLR) shares spiked up nearly 8 percent Tuesday after the company issued strong fiscal 2018 guidance at its analyst day in Perrysburg, Ohio.

First Solar is expecting fiscal 2017 sales in the $2.3-2.25 billion range against analyst estimates of $2.38 billion. Solar power systems are expected to account for 75-80 percent of total net sales.

Strong full-year EPS guidance of $1.25-$1.75 versus a $1.25 estimate set a spark to shares following the announcement.

First Solar has already turned in a solid 2017, with shares up a whopping 92 percent year-to-date. 2017 and 2018 were expected to be down years for the solar industry, but 2017 has instead been a record year in solar. 

Still, some uncertainty persists after the tax bill passed by the U.S. Senate last week contained provisions that could harm wind and solar energy investment and deployment.

"While the language and intention of the provision is geared more towards curtailing cross-border exemptions used to reduce tax bills, the renewable industry group is worried that it could make U.S. renewable tax credit monetization difficult for investors," a Credit Suisse report said.

First Solar is expecting a net cash balance of $1.6-$1.8 billion by the end of 2018.

Related Links: 

4 Reasons Deutsche Bank Upgraded First Solar

3 Reasons To Ignore 'Overwhelming' Cynicism On Canadian Solar

Posted-In: Credit Suisse Solar Solar PowerNews Guidance Movers Best of Benzinga


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