Despite increased revenue, First Solar, Inc. (Nasdaq: FSLR) reported a smaller profit (quarter-to-quarter) for 2Q10–but still topped Wall Street expectations.
Quarterly net sales were $587.9 million, up 12% from $525.9 million in 2Q09, due to increased production volumes and systems revenue, partially offset by a decline in pricing and lower euro exchange rates. 2Q10 net sales increased $19.9 million from 1Q10, primarily due to increased turnkey system sales.
2Q net income per share was $1.84, down from $2.11 in 2Q09 and down from $2.00 in 1Q10. Year over year, the declines were primarily driven by lower module average selling prices, and higher operating expenses that were partially offset by increased module production and lower module cost per watt.
Analysts had expected earnings of $1.61 per share, on revenue of $545.4 million, according to Thomson Reuters I/B/E/S.
Quarter over quarter, the declines were primarily driven by higher operating expenses, the company said.
PV module manufacturing cost was reduced to $0.76/watt, down $0.05 from the prior quarter and 13% year over year. Annual throughput per line was up 6% quarter over quarter to 59 megawatts (MW). This increases announced or operating capacity from 2.1 to 2.2 gigawatts (GW) by 2012.
For 2010, First Solar forecasts net sales of $2.5 to $2.6 billion, reflecting reallocation of module capacity from its systems business to meet stronger module demand by our European customers. Earnings per fully diluted share are increased to a projected range of $7.00 to $7.40.
Total capital spending is projected to be $575 to $625 million. The company expects to generate $575 to $625 million of operating cash flow.
First Solar CEO Rob Gillette said he expects demand to remain strong in 2011, despite recent reports to the contrary. "The global market is very strong in 2010, and we expect it to continue into 2011," Gillette told a conference call.
Read additional coverage at the link below.
Loading...