Yahoo Finance What Do Analysts Expect for First Solar’s Margins in 1Q16?
What Do Analysts Expect from First Solar's 1Q16 Earnings?
First Solar’s EBITDA estimates
First Solar (FSLR) reported total adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of about -$0.2 million in 1Q15 and $195.7 million in 4Q15. For 1Q16, analysts expect First Solar to report EBITDA of $135.7 million and an EBITDA margin of 14.3%. The expected margins are lower compared to 20.8% in 4Q15. Lower EBITDA implies lower income from the company’s ongoing operations. Analysts expect a marginal improvement in the EBITDA margins in 2H16.
Operating income
First Solar reported an operating loss of $63.5 million in 1Q15 and an operating profit of $131.8 million in 4Q15. For 1Q16, analysts expect First Solar to report an operating income of about $108 million. Moving ahead, analysts anticipate that the company could report an operating income of about $320 million for fiscal 2016. This is in line with the company’s fiscal 2016 operating income guidance of $260 million–$330 million.
Adjusted net income
First Solar reported an adjusted net loss of $58.0 million for 1Q15 and an adjusted net profit of $164.1 million for 4Q15. For 1Q16, analysts expect First Solar to report an adjusted net income of about $93.2 million. Moving ahead, analysts anticipate an increase in the net adjusted income from 2H16. This is primarily due to the anticipated recognition of revenue from the completion of First Solar’s advanced stage projects in North America.
In the long term, upstream solar (TAN) companies’ bottom lines such as First Solar, SunEdison (SUNE), SunPower (SPWR), Trina Solar, and Canadian Solar (CSIQ) largely depend on fossil fuel prices and environmental regulations.
In the next part, we’ll take a look at the factors that investors should look for in First Solar’s 1Q16 earning results.
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