By Maria Armental
First Solar Inc.'s profit nearly tripled in the fourth quarter
as the solar-products maker reported higher revenues from the sale
of a key project.
In the current quarter, First Solar projects a loss of 25 cents
to 35 cents a share on sales of $550 million to $650 million,
compared with the consensus of a profit of 80 cents a share on
revenue of $924 million.
Shares fell 1% to $54.37 in recent after-hours trading.
First solar said results are projected below prior quarters as
it keeps completed projects on its balance sheet--rather than sell
them-- while it considers forming a joint "yieldco" with rival
solar-panel maker SunPower Corp.
Similar to real-estate investment trusts (REITs) and master
limited partnerships (MLPs), yield companies, known on Wall Street
as "yieldcos, " are publicly traded companies that hold power
plants and issue regular dividends to shareholders.
Tempe, Ariz.-based First Solar has been expanding
internationally to soften the expected impact of a slowdown in
installations in the U.S. In the third quarter, about 42% of its
bookings came from outside the U.S.
A 30% tax credit on solar systems is scheduled to drop to 10% in
2017.
First Solar is also venturing into the residential market
investing in community-solar provider Clean Energy Collective.
Unlike the burgeoning rooftop market, community solar, uses
ground-mounted systems.
First Solar also announced this month plans with Apple Inc. to
build a 2,900-acre solar farm in Monterey County, Calif., that will
produce enough electricity to power all of Apple's offices and
stores in the state, including its new headquarters under
construction in Cupertino. Construction is expected to be completed
by the end of 2016.
Overall, First Solar reported net income of $192 million, or
$1.89 a share, up from $65.3 million, or 64 cents a share, a year
earlier.
Revenue jumped 31% to $1.01 billion.
Analysts surveyed by Thomson Reuters expected 76 cents a share
on $1.28 billion in revenue.
Gross margin improved to $30.6% from 24.6%.
Bookings through the end of the year were 2.5 gigawatts of solar
capacity. So far this year, First Solar reported 311 megawatts in
bookings.
One gigawatt, or 1,000 megawatts--roughly the amount produced by
an average nuclear reactor--can power 216,000 homes in California
and 155,000 in New York, according to the Solar Energy Industry
Association. Weather and other factors can affect a system's energy
production.
Through Tuesday's close, First Solar's stock had fallen 5% over
the past 12 months.
Write to Maria Armental at maria.armental@wsj.com
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