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First Solar Halted In Time To Miss Earnings, Kill Guidance

Tyler Durden's picture




 

It appears yesterday's FSLR CEO "departure" was no fluke. The company just came out with earnings which in addition to being a current quarter disaster with EPS coming in at $2.25, on expectations of $2.67, also added disastrous guidance to the mix. To wit: First Solar now sees year EPS $6.50-$7.50, compared to $9-$9.50 previously, and is now forecasting net sales of $3 billion - $3.3 billion, compared to $3.6 billion -$3.7 billion previously. And combining the worst of both the Netflix and Amazon press releases, the company has also announced it is cutting its CapEx, and is further exploring options to reallocate overhead expenses. We hope Whitney Tilson wasn't buying this one on the way down too as the company may be headed for $0.00 soon to quite soon. Of course, if his plan, like in NFLX, is to keep adding more on the way down and averaging lower, he will be more than content.

 

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Wed, 10/26/2011 - 08:13 | 1811719 SheepDog-One
SheepDog-One's picture

Well I guess this must be why futures are comfortably deep in the green, along with Europe imploding. 

Wed, 10/26/2011 - 08:15 | 1811723 jdelano
jdelano's picture

Anybody able to explain how 50% write down will not trigger CDS?  

Wed, 10/26/2011 - 08:20 | 1811746 SheepDog-One
SheepDog-One's picture

I dont know, guess just because they say so?

 

Wed, 10/26/2011 - 08:25 | 1811758 SheepDog-One
SheepDog-One's picture

Seriously though, I think theres about to be huge convulsions in world markets...if bankers have to take a loss theyre going to throw a huge tantrum.

Merkels comment 'Dont count on 50 more years of peace in Europe' to me means '50 days'.

Wed, 10/26/2011 - 08:37 | 1811796 LeBalance
LeBalance's picture

When irresponsible MAD comments get uttered it is a "There's something happening here" moment.

Wed, 10/26/2011 - 08:19 | 1811738 valley chick
valley chick's picture

why in the green with all the risk?  Oh...thats right...what is bad is good for the market.

Wed, 10/26/2011 - 08:13 | 1811721 GeneMarchbanks
GeneMarchbanks's picture

STFD.

Wed, 10/26/2011 - 08:20 | 1811744 Burnsy
Burnsy's picture

Oh Leeo...I think I won our little bet.

Wed, 10/26/2011 - 08:23 | 1811751 SheepDog-One
SheepDog-One's picture

I guess FSLR demonstrates the economic collapse within the broader overall depression.

These guys all have access to unlimited free govt money, and still cant make a dime. 

Bullish!!

Wed, 10/26/2011 - 08:25 | 1811757 apberusdisvet
apberusdisvet's picture

 

Please don't pick on Leo; he of solar pumping fame; he has serious problems with reality.

Wed, 10/26/2011 - 08:27 | 1811768 SheepDog-One
SheepDog-One's picture

Didnt Leo drift off into articles about govt funded pension bullishness and whatnot?

Wed, 10/26/2011 - 08:31 | 1811780 ZackAttack
ZackAttack's picture

Ah, he was just proceeding from a false theory about the world, that one could tag along on the coattails of hedge fund managers perceived to possess a quality of "long term outperformance."

He lived in the pension fund world for years where it was necessary to believe in fairy tales like this, and most important, to believe that one could a priori identify these outperforming managers. Stockholm Syndrome, same as lots of True Believers.  

Wed, 10/26/2011 - 09:01 | 1811894 Smiddywesson
Smiddywesson's picture

Yes, hot money outperforms, not mindless gambling managers who survive their bets. Hot money moves from one area to the next, like a swarm of locust, MAKING companies outperform regardless of value, and then moving on to another host, leaving rubble in its wake. The performance of the managers is irrelevant. The stories behind the host companies are also irrelevant. Hot money is the only thing that matters.

"Money never leaves the casino. It simply rotates around to greener pastures."

Wed, 10/26/2011 - 08:26 | 1811765 Archimedes
Archimedes's picture

The solar industry is DEAD! IT is still not efficient and can only survive through huge Govt subsidies. (Ahem - Solyndra, First Reserve Solar, etc)

Now that Europe and the US are bankrupt the solar subsidy gravy train is over. Hence all of these companies will go to zero.

And they said thin film would change the game..Ha!

Fools!

Wed, 10/26/2011 - 08:32 | 1811784 Alex Kintner
Alex Kintner's picture

Um Govt subsidies? Like the subsidies US taxpayers lavish on oil companies in the form of $Billions in tax breaks.

Wed, 10/26/2011 - 08:49 | 1811835 Archimedes
Archimedes's picture

True!

But Oil companies don't need the subsidies to make a profit. Just to make a lot of profit! When solar becomes more cost effective than oil then we can talk.

Wed, 10/26/2011 - 08:29 | 1811775 Saxxon
Saxxon's picture

FSLR up $3.50 on resumed trading.  Next.

Wed, 10/26/2011 - 09:19 | 1811955 Mike2756
Mike2756's picture

So is nflx and amzn is "only" down 24.

Wed, 10/26/2011 - 10:14 | 1812239 junkyardjack
junkyardjack's picture

Bull Market baby, "Can't nobody take my pride, Uh-uh uh-uh, Can't nobody hold me down, Oh no, I got to keep on moving"

Wed, 10/26/2011 - 08:30 | 1811777 Alex Kintner
Alex Kintner's picture

Bullish for Solar companies since FSLR is actually profitable.  Bearish for the dumb investors who bid it up to the Sun and beyond.

Wed, 10/26/2011 - 08:31 | 1811782 bob_dabolina
bob_dabolina's picture

Bullish =====> stock trading at $200in March now @ 40 is THE NEW KILLING IT BULL MARKET

lol

Wed, 10/26/2011 - 09:04 | 1811908 I am a Man I am...
I am a Man I am Forty's picture

fslr is trading at a fair value, not sure why it is up so much though

Wed, 10/26/2011 - 09:10 | 1811925 JawsMusic
JawsMusic's picture

PE of 6.25 based on premarket quote and 7.50 earnings.

Not going to zero, looks like its reasonably valued here.

Wed, 10/26/2011 - 11:24 | 1812680 NotApplicable
NotApplicable's picture

Well, at least they didn't announce a stock buyback, right?

Wed, 10/26/2011 - 12:01 | 1812875 aaronb17
aaronb17's picture

I'll pipe in to agree, the stock is actually a decent value here.  I have never said that before about FSLR, and its prior stratospheric stock values.  Thanks to all the shorting, it's at a P/E of what, 8?  And it's market cap is basically equivalent to its net sales?  Not bad. 

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