Why First Solar Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of First Solar (NAS: FSLR) rose 21% today after the company beat earnings estimates and upped full-year guidance.
So what: Second-quarter revenue came in at $957 million, topping estimates of $822 million. Earnings per share were $1.27, above the $0.92 market analysts expected.
For the full year, the company said revenue would be $3.6 billion-$3.9 billion, while earnings per share would be $4.00-$4.50. Both were above the company's previous estimates.
Now what: First Solar has been focusing on system sales in more sustainable markets, and this quarter the move is paying off. The company recognized revenue from some major projects in the Southwestern U.S. and signed deals in India and Australia. Right now the company's increased efficiency and systems business are helping results, and with an earnings multiple of 4.5, at the current price I think shares can move higher.
For a more detailed look at the company, check out our in-depth analyst report found here.
Interested in more info on First Solar? Add it to your watchlist byclicking here.
The article Why First Solar Shares Jumped originally appeared on Fool.com.Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.