First Solar Bulls Get Burned Following Q2 Beat

First Solar, Inc. (NASDAQ: FSLR) bulls are enduring a frustrating trading session on Thursday. The stock is down 11.3 percent on the day following Q2 earnings and revenue beats.

First Solar charged $86 million in Q2 when it decided to no longer make solar panels using TetraSun’s silicon technology. First Solar acquired TetraSun back in 2013. CEO Mark Widmar said the transition away from TetraSun’s products and other restructuring initiatives will cost the company up to $120 million.

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In addition to the change in direction, First Solar slashed its 2016 EPS guidance from $4.10–4.50 to $3.65–3.90.

A number of Wall Street firms have already weighed in on First Solar’s report:

• Janney maintains its Buy rating, but cut its price target from $89 to $68.
• Oppenheimer remains bullish and has an Outperform rating and $56 price target for the stock.
• Credit Suisse maintains its Neutral rating, but cut its price target from $65 to $50.
• Bank of America also remains Neutral and dialed back its price target from $68 to $61.
• Standard & Poor's saw enough grounds for a downgrade from Buy to Hold and a price target cut from $75 to $55.
• JPMorgan and Roth Capital also lowered their price targets for First Solar to $65 and $55, respectively.

At time of writing, First Solar was down 12.14 percent on the day at $43.26.

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Disclosure: The author holds no position in the stocks mentioned.