First Solar Inc. (NASDAQ: FSLR) recently reported its second-quarter financial results, posting second-quarter net sales of $587.9 million, up 12% from the second quarter of 2009. The increase in second-quarter revenues is primarily due to increased production volumes and systems revenue, partially offset by a decline in pricing and lower euro exchange rate.
First Solar reported second-quarter net income of $1.84 per diluted share, down from $2.11 per diluted share reported for the second quarter of 2009 and $2 per diluted share reported for the first quarter of 2010. The year-over-year decline in net income was due to lower module average selling prices, and higher operating expenses. These were partially offset by increases module production and lower module cost per watt.
The company’s PV module manufacturing cost was reduced to $0.76/watt, down $0.05 from the previous quarter and 13% on a year-over-year basis. Annual throughput per line increased 6% on a sequential basis to 59.0 MW.
For 2010, First Solar expects net sales to come in between $2.5 billion and $2.6 billion, reflecting reallocation of module capacity from the company’s systems business to meet stronger module demand by its European customers. The company expects EPS of $7-$7.40. The company projects total capital spending of $575 million to $625 million. It expects to generate $575 million to $625 million in operating cash flow.
Shares of First Solar plunged in today’s trading. The stock touched a low of $125.31 in mid-day trading. At last check, it was down 7.50% to $125.34, with volume up from daily average of 1.85 million to 3.63 million.
The First Solar stock has a 52-week range of $98.71-$175.88. Year-to-date, the stock has declined 7.19%. It is currently trading above its 50-day and 100-day moving averages. The stock has seen support at $129.42. It has met with stiff resistance at $138.87.
Analysts, currently, have a consensus recommendation of Outperform on First Solar. The stock has 17 Buy, 10 Outperform, 12 Hold, 2 Underperform and 3 Sell ratings, at the moment.
Tempe, Arizona-based First Solar Inc. manufactures and sells solar modules with an advanced thin film semiconductor technology. The company is also engaged in the designing, construction and selling of photovoltaic (PV) solar power systems. The company conducts its operations through two business segments; components segment and systems segment. Earlier in the month, the company completed the acquisition of NextLight Renewable Power.
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