Raymond James On First Solar: Focus Is On Guidance, Not So Much Earnings

Speaking to Benzinga, Raymond James analyst Pavel Molchanov said that when it comes to First Solar, Inc. (NASDAQ: FSLR), Q4 earnings are substantially less important than where the guidance for 2015 is headed. The “real focus is not so much on earnings but on the guidance for 2015,” Molchanov said.

At its Analyst Day last year, First Solar guided to 2015 EPS of $4.50 to $6.00 in 2015. Molchanov characterized Tuesday's report as an “important update” that should narrow the range.

See Also: A YieldCo is The 'Best Strategy' For First Solar And SunPower, Deutsche Bank Explains

Raymond James expects Q4 EPS of $0.85, however, Molchanov has “very low confidence” in this number. He points to the volatility in quarterly EPS as an example. During Q1, First Solar had EPS of $1.10, which fell to $0.04 in Q2 before rising to $0.65 in Q3. This volatility, Molchanov said, is the result of variations as to when First Solar can recognize revenue from current projects.

Shares of First Solar recently traded at $56.64, up 14 percent following a YieldCo with SunPower.

Mark Meadows and Brianna Valleskey contributed to this report.