First Solar, Inc. shares fell nearly 8% by midday on Friday after the company reported worse-than-expected fourth quarter financial results. Revenue rose 2.5% to $339.18 million – missing consensus estimates by $120.74 million – while net losses of 25 cents per share beat consensus estimates by six cents per share. Despite the lower systems and third-party module sales, the company raised its guidance on full-year revenue, EPS and shipments.
Analysts remain bullish on the stock despite the somewhat-expected drop in revenue. Deutsche Bank analyst Vishal Shah believes that the stock has “plenty of upside left” with the S6 ramp-up on track and sold-out production through the first half of 2020. He also indicated that there could be further earnings upside in 2019 through 2020 and reiterated the firm’s Buy rating on First Solar shares with a $75.00 price target, which represents a 23% premium to the current $61.00 market price. (See also: 6 Favorite Buys of a Top-Rated Stock Picker.)
First Solar shares moved sharply lower following its fourth quarter financial results but could see some near-term support for consolidation. …read more
Read more here: First Solar Breaks Down but Could See Near-Term Support