First Solar expects full-year revenue to grow to $3.25-3.45bn in 2019

First Solar Inc of Tempe, AZ, USA – which makes thin-film photovoltaic modules based on cadmium telluride (CdTe) as well as providing engineering, procurement & construction (EPC) services – has forecasted full-year 2019 net sales of $3.25-3.45bn (up from the $2.3-2.4bn for 2018 forecasted in late October), of which solar power systems should comprise 55-60% and third-party modules the remainder (with shipments representing 5.4-5.6GW of energy-generatng capacity).

Gross margin should rise to 20-21%, inclusive of production ramp costs of $20-30m. Despite including plant start-up expenses of $90-100m from the deployment of Series 6 module capacity in 2019, operating expenses are expected to be cut to $390-410m.

Operating income should rise to $260-310m (up from 2018’s forecasted $90-110m), yielding earnings per share (EPS) of $2.25-2.75 (up from 2018’s forecasted $1.40-1.60).

Capital expenditure (CapEx) is expected to fall to $650-750m (from $800-900m). Due mainly to the continuing investment in new Series 6 capacity, the net cash balance (cash, marketable securities and restricted cash minus expected debt) is projected to drop further, from about $2-2.2bn at end-2018 to $1.6-1.8bn during 2019.

Tags: First Solar Thin-film photovoltaic CdTe

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