Stocks on the Move: First Solar, Inc. (NASDAQ:FSLR)


First Solar, Inc. (NASDAQ:FSLR) retreated -3.73% and closed its last session at $29.95. The stock has the market capitalization of $3.11 Billion with the total outstanding shares of 103.91 Million. First Solar, Inc.. has Analysts’ Mean Recommendation of 2.71 between the scale of 1 to 5 (1 represents Strong Buy and 5 means Sell). The stock currently has P/E of 6.13 for trailing twelve months while its Forward P/E is 50.51.

First Solar, Inc. (NASDAQ:FSLR) touched its 52-Week High of $74.29 on Mar 18, 2016 while it’s 52-Week Low of $28.6 on Nov 17, 2016. The company currently has Return on Assets of 6.6 percent, Return on Equity of 8.7% and Return on Investment of 9 percent. The stock currently showing Weekly Volatility of 3.69%% and Monthly Volatility of 4.79% Percent with Average True Range of 1.52 and Beta of 2.03.

The 18 analysts offering 12-month price forecasts for First Solar Inc have a median target of 33.50, with a high estimate of 57.33 and a low estimate of 20.00. The median estimate represents a +11.85% increase from the last price of 29.95.

Press Release:

The Company on 16 November declared an acceleration of Series 6 production 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. 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. The charges are anticipated primarily in 2016 and are comprised of the following:

  • $475 to $585 million, including asset impairments related to Series 4, Series 5 and stored manufacturing equipment, and charges for cancellation of open purchase orders. The cash impact is anticipated to range from $50 to $70 million.
  • Up to $80 million for a non-cash impairment of goodwill
  • $10 to $15 million in cash severance charges, expected primarily in 2016
  • $15 to $20 million of other charges, expected primarily in 2017

Company Profile:

FIRST SOLAR INC. manufactures solar modules with an advanced thin film semiconductor process that significantly lowers solar electricity costs. By enabling clean renewable electricity at affordable prices, First Solar provides an economic alternative to peak conventional electricity and the related fossil fuel dependence, greenhouse gas emissions and peak time grid constraints.