First Solar (FSLR) Shares Soar on Guidance, TetraSun Acquisition

Shares of First Solar Inc. (FSLR) closed up +12.31 or +45.54 percent to $39.35 per share on Tuesday, after the company announced an optimistic guidance for its 2013 fiscal year. The stock's precipitous rise in Tuesday's session triggered NASDAQ circuit breakers and was halted five times during trading. In addition to the improved earnings guidance, First Solar announced it was acquiring TetraSun, a startup manufacturer of solar photovoltaic (PV) cells.

First Solar signed a definitive agreement with TetraSun management and JX Nippon Oil & Energy Corp along with other investor for the acquisition. Terms for the deal, which is expected to close in the second quarter of 2013 were not disclosed. Daily Chart
Founded in 1999 as First Solar Holdings LLC, Tempe, Arizona based First Solar is a worldwide provider of photovoltaic solar power systems that employ its module and systems technology. First Solar is the world's largest thin-film solar manufacturer and gets as much as two thirds of its overall sales from the building and selling of utility size solar power plants. Two years ago, the company changed its business model, originally being a large manufacturer of solar panels, First Solar shifted its focus to building solar farms for utility companies. The shift was largely due to the solar panel market being flooded by cheaper solar panels made in China. The company's new guidance for 2013 earnings was announced at their annual analyst day meeting and included improved guidance for 2014 and 2015. First Solar is now calling for between $4.00 and $4.50 per share for full year diluted earnings on net sales of $3.8 billion - $4.0 billion. The company says that it plans to make $350 -$400 million in capital expenditures and expects operating cash flow to come in at $800 million-$1 billion with operating income estimated at $430 -$460 million. The analyst consensus for this year expected the solar panel producer to earn $3.60 per share this year on sales of about $3.17 billion. In addition to the improved guidance, First Solar announced the acquisition of TetraSun. The startup makes solar panels with cutting edge cell architecture capable of conversion efficiencies exceeding 21 percent. The company can produce these cells on a commercial scale at costs comparable to conventional multi-crystalline solar cells. The acquisition will give First Solar a producer of rooftop systems and open the market for solar panels and solar farms in Japan, which is expected to become the second largest market for solar energy products this year. First Solar will then be able to compete in the residential rooftop market with SunPower Corp. (SPWR), the largest maker of silicon based panels in the United States. Since trading under $12 per share in early June of last year, First Solar stock has had an impressive performance. With the acquisition of TetraSun, the company stands to continue improving with increasing earnings and cash flow. While a pull back is expected in the stock after a rise of the magnitude seen on Tuesday, the prospects of First Solar and their stock price continue to look favorable. Other News About FSLR First Solar Competing Against Silicon Panels on Efficiency Gains New thin-film panels increase efficiency and can compete with silicon based panels. First Solar Buys 150-Megawatt California Solar Power Project FSLR buys plant from Energy Power Partners. Other Stocks in the News Blackstone Seeks Allies for its Dell Bid Blackstone talking to several tech companies to join its bid for Dell. After Apple, China State Media Train Their Fire on Microsoft Chinese radio criticizes Microsoft for shorter warranty on products. Copyright 2013 by, Inc. InvestorGuide has no control over the sites we link to, is not affiliated with these sites, and cannot take responsibility for their quality or suitability. The news, analysis, commentary and profile information is not meant to be comprehensive, and the data provided is not guaranteed to be accurate. WebFinance Inc., the publisher of this newsletter, is not a registered investment advisor or a broker/dealer. This is not a stock recommendation newsletter but rather a source for investment ideas, and we encourage you to fully research any company before considering investing. The opinions expressed herein are those of the author and do not necessarily represent the views of nor are they endorsed by WebFinance Inc. No employee of WebFinance has owned or currently owns any shares in the company described above. The above is neither an offer nor solicitation to buy or sell any securities. The trading of securities may not be suitable for all potential readers of this newsletter, and the purchase of stocks mentioned in this newsletter may result in the loss of some or all of any investment made. We recommend that you consult a stockbroker or financial advisor before buying or selling securities or making investment decisions. We are not responsible for claims made by advertisers and sponsors. Anyone who makes decisions based on what they read here does so at their own risk and cannot hold WebFinance Inc. (DBA, Inc.) or its employees responsible.

Published on Apr 10, 2013
By Jay Hawk
Jay Hawk
Jay Hawk enjoyed a 12-year professional financial markets career incorporating extensive first hand futures and options experience obtained by trading in the stock, commodity and forex markets on U.S. exchanges. Since retiring as a full-time financial market professional, he has been actively trading stock, commodities, forex and options for his own account and managing funds for others, as well as writing financial market commentary and educational articles.

Copyrighted 2020. Content published with author's permission.

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