Список проголосовавших за комментарий " <table class="BriefingDataTable" border="0" cellspacing="0" cellpadding="0"><tr> <td class="tickerColumn"> </td> <td class="articleColumn">First Solar Earnings Preview (36.73 +1.89)<p>First Solar (FSLR) is set to report Q4 results tonight after the close with a conference call to follow at 4:30pm ET. FSLR will report shortly after the bell. <strong>Current Capital IQ consensus stands at EPS of $0.98 on Revenue of $394 mln.</strong></p><p>It has been a difficult year for the solar industry. There are <strong>two fronts that are squeezing the industry:</strong> 1) An over slow down in demand due to a draw back of some feed in tariffs and uncertainty around future government policies and 2) the miss steps in capacity growth that provided a glut of modules which would flood the market. FSLR was particularly hurt by the glut as its biggest advantage in the industry, low cost thin film modules, were under pressure by a slew of promotional sales by PV module providers in order to work down the capacity glut. How this continues to impact FSLR in 2017 will be key. The <strong>impact will be reflected in the company's guidance which will make 2017 projections and commentary key drivers.</strong></p><p>There are <strong>some tailwinds in FSLR's favor</strong>. The company was early in recognizing the issues facing the industry and began taking steps in the middle of 2016 to combat the issue. It accepted the decline in demand as it would not chase cheap deals in order to preserve margins. It also announced that it would be pressing forward with its Line 6 production, evolving from its Line 4 and basically by-passing the Line 5 all together. FSLR viewed the move as prudent as it felt it could take advantage of the lull in demand and get Line 6 up and running. This will bring about an improved gross margin but it could also prolong the slump for FSLR as Line 6 is not expected to be up and running until mid-2018. If the co is able to convince investors that this is running on (or ahead) of target this could help offset low 2017 expectations.</p><p><strong>Solar as a whole has been looking better</strong> as market participants look at some of the low pricing around the group. SPWR and SEDG have both posted mediocre reports but the idea that there is light at the end of the tunnel has led some people back into the names. FSLR has seen its share price rally approx 13% over the past week ahead of tonight's report. It has broken above itss 100-sma (34.64) and is attempting to break back towards $40. It <strong>faces plenty of headline risk today</strong> but a surprise showing could share a few more shorts out and lead to some additional investments.</p><p><strong>2017 Guidance</strong></p><ul><li>2017 Net Sales in the range of $2.5-2.6 bln, Capital IQ consensus $2.966 bln</li><li>Gross Margins between 12.4-14.5%</li><li>Operating Expense Non-GAAP $280-300 mln</li><li>Operating Income Non-GAAP $40-80 mln</li><li>Non-GAAP EPS $0.00-0.50, Capital IQ consensus $1.91</li><li>Net Cash Balance $1.4-1.6 bln</li><li>Operating Cash Flow $550-650 mln</li><li>CapEx $525-625 mln</li><li>Shipments 2.4-2.6 GW (Street Expectations were for approx 3.0 GW)</li><li>Co announced an <strong>acceleration of Series 6 production</strong> into 2018, with approximately 3 Gigawatts of production expected in 2019. Over the course of 2017 and 2018 the Company's existing production facilities will be converted to Series 6 production and the current Series 4 product will be phased out. As a result of the change in roadmap the Company will cancel its Series 5 product. The Company will reduce its workforce at its manufacturing facilities both domestically and internationally as a result of the transition from Series 4 to Series 6 production.</li><li>Additional reductions in administrative and other staff are also planned. Resulting from the transition to Series 6 from Series 4 and other competitive factors, the Company expects to incur restructuring and asset impairment charges of $500 to $700 million, which includes a cash impact of $70 to $100 million. These actions, combined with additional reductions in administrative and other staff, are expected to reduce First Solar's workforce by approximately 1,600 associates, or 27% of its approximately 6,000 global total.</li></ul><p><strong>Comments on ASPs (From 11/2)</strong></p><ul><li>ASPs declined in Q3 but have started to level off in Q4. FSLR said it would walk away from deals that did not make economic sense. FSLR was looking at capacity in saturated market. In current ASP Series 4 and 5 margins may be challenged. Series 6 will be most competitive product. Progressing in evaluation initiatives.</li></ul><p><strong>FY16 Results</strong></p><ul><li>FSLR reported Q3 (Sep) earnings of $1.22 per share, excluding non-recurring items, $0.56 better than the Capital IQ Consensus of $0.66. Revenues fell 45.9% year/year to $688 mln vs the $985.39 mln Capital IQ Consensus. Co issued guidance for FY16, seeing EPS of $4.30-4.50. FSLR projected FY16 revs in the range of $2.8-2.9 bln (Prior $3.8-4.0 bln), excluding non-recurring items.</li><li>Revenue guidance lowered for revised project sale timing.</li><li><strong>FY16 Guidance</strong><ul><li>Gross Margin 25.5-25.6% (Prior 18.5-19.0%)</li><li>Operating Expense $375-385 mln (Prior $380-400 mln)</li><li>Operating Income $340-370 mln (Prior $310-370 mln)</li><li>Net Cash Balance $12.4-1.5 bln (Prior $1.9-2.2 bln)</li><li>Operating Cash Flow- ($100 mln)-$0 mln (Prior $500-600 mln)</li><li>CapEx- $225-275 mln (Prior $275-325 mln)</li><li>Shipments 2.8-2.9 GW (Prior 2.9-3.0 GW)</li></ul></li></ul></td> </tr></table>"