First Solar (FSLR) Stock Down on Earnings, GE & Element Power Deals

Shares of First Solar Inc. (FSLR) traded down -4.46 or -9.54 percent in pre-market trading on Wednesday, after the company reported its second quarter earnings for fiscal 2013. Quarterly adjusted earnings for the company came to $0.39 per share on revenues of $519.76 million. The solar panel manufacturer had made $1.27 per share on revenues of $957.33 million in the second quarter of 2012. Analysts called for earnings of $0.52 on revenues of $721.08 million.

GAAP earnings were $0.37 per share that included a restructuring charge of $0.02. In addition to the disappointing earnings news, First Solar announced it was buying General Electric's (GE) thin film solar panel technology in exchange for 1.75 million First Solar shares. The company also announced it was acquiring a 1.5 GW pipeline of United States and Mexico assets from Element Power. Daily Chart
Founded in 1990, Tempe, Arizona based First Solar Inc. is the world's second largest producer of photovoltaic (PV) solar panels. First Solar uses cadmium telluride or CdTe as a semiconductor, producing solar panels far more efficiently and at a lower cost than with crystalline silicon. The deal with GE will have First Solar acquire GE's thin film panel technology, which has had good results in the laboratory but has yet to be manufactured on a large scale. In exchange for GE's technology, GE will get 1.75 million shares of First Solar, amounting to about two percent of the company's stock outstanding. The two companies hope that by pooling their resources a more efficient solar panel can be produced. GE's thin film panels set a record for efficiency at the National Renewable Energy Lab in Golden, Colorado earlier this year. First Solar CEO James A. Hughes stated in a conference call after the earnings release that, "having a company of GE stature invest and partner with us is a tremendous validation that cad tell solar technology and First Solar's manufacturing expertise and we are excited about the potential benefits this will mean for the future development of our technology and the prospects for our business." In addition to earnings and the deal with GE, First Solar also announced that it was acquiring a 1.5 GW pipeline of development assets in the U.S. and Mexico from Element Power. The pipeline includes projects in Arizona, California, Colorado, Georgia, Illinois, Louisiana, North Carolina and Texas, as well as in the State of Sonora, Mexico. Tim Rebhorn, First Solar's Senior Vice President of Business Development for the Americas stated that, "The Mexican project pipeline strategically positions First Solar for our entry into the market. We are excited by the opportunity to explore new relationships with CFE (Comision Federal de Electricidad) and with commercial and industrial customers and the Mexican government, and to establish a strong initial presence in the region." While First Solar stock is under pressure because of disappointing earnings, the company's new ventures may provide additional revenue in future quarters. First Solar has been resilient in the solar market and has adapted to changes, which could be an opportunity to invest. Other News About FSLR First Solar Sees Australian Project Decision Within 12 Months Australian government to decide on increasing the size of the country's largest solar development. First Solar's Q2 2013 Earnings Call Transcript Highlights from the company's latest earnings conference. Other Stocks in the News How Netflix Can Adjust Pricing (at the Risk of Another Qwikster Panic) Netflix considers adjusting prices. Amazon's Bezos pays hefty price for Washington Post Bezos could have paid as much as four times more than what the newspaper was worth. 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 Aug 7, 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.

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