NEW YORK (TheStreet) -- First Solar (FSLR) shares closed trading down 2.75% to $49.59 in trading on Wednesday after the company's industry rival Canadian Solar (CSIQ) issued light fourth quarter financial guidance in its third quarter earnings results before the opening bell today.
Canadian Solar said that it expects to ship 810 to 860 megawatts of solar modules and in turn will generate between $925 million and $975 million for the current quarter. Analysts on average are expecting the company to report earnings of $977.5 million when it releases that information early next year.
The company did however deliver a more profitable than expected third quarter, reporting earnings of $1.75, well ahead of analysts' $1.16 estimates for the period.
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First Solar reported revenue of $889 million when it released its earnings last week, a 30% drop from the same period last year. Yesterday analysts at Argus maintained the company's "buy" rating and $79 price target yesterday despite the earnings miss.
"In our view, First Solar will likely be the only solar power player to generate positive cash flow over the next three years. That said, we expect quarterly earnings to be "lumpy" due to the timing of revenue recognition and project sales, and would not place too much emphasis on variations in quarter-to-quarter results," said analysts.
TheStreet Ratings team rates FIRST SOLAR INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: