First Solar (Nasdaq: FSLR) released new revenue and earnings forecasts for 2011 that significantly eclipsed Wall Street expectations.
The company continues its reputation as the premier thin-film manufacturer in terms of market share, low cost production and energy conversion performance.
FSLR expects net sales for 2011 in the range of $3.7 to $3.9 billion, up about 46% year-over-year compared to mid 2010 guidance provided on October 28.
EPS is forecasted to grow to between $8.75 to $9.50 per fully diluted share and consolidated operating income is $875 to $975 million.
Analysts polled by Thomson Reuters had most recently forecast revenue of $3.63 billion and earnings of $8.61 a share.
The net sales forecast is comprised of $2.8 to $2.9 billion of module sales and $0.9 to $1.0 billion of EPC/project development sales.
These forecasts include $80 – $85 million of manufacturing start-up expenses and $15-20 million of factory ramp costs associated with plant expansions. The Company plans to invest $1.0 to $1.1 billion of capital to nearly double production capacity by year-end 2012, to maintain existing capacity and to add infrastructure to support growth. First Solar expects to generate $1.0 – $1.1 billion of operating cash flow during 2011.
First Solar is a top performer among renewable energy stocks, though share prices fell off a bit after the latest quarterly report.
In 2011, they plan to increase capacity by 45% to 2 GW; further increase conversion efficiency by another 8-10%; and continue their 30% cost advantage. They also plan to build 100 MW-plus utility scale projects, with an increasing focus on the US, rather than Germany.
Sale to NRG
In a separate announcement, NRG Energy, Inc. (NYSE: NRG) and First Solar announced that NRG Solar has agreed to acquire the 290-megawatt (MW) Agua Caliente solar project from First Solar. Financial terms were not disclosed.
The Yuma County, AZ project is scheduled to be completed by 2014 and has a 25-year power purchase agreement with Pacific Gas and Electric Company (NYSE: PCG). When completed, Agua Caliente is expected to be the largest operational photovoltaic (PV) site in the world.
An application has been submitted to the U.S. Department of Energy for a federal loan guarantee in connection with the financing of the project, which is expected to be one of the first in the U.S. to start construction under the program. Closing of the acquisition is contingent on receiving the federal loan guarantee. NRG plans to invest up to $800 million of equity in the project through 2014 through a potential combination of cash on hand in addition to third-party investor equity.
First Solar will provide operations and maintenance services.
The Agua Caliente solar project is the latest in a series of clean energy advancements NRG has made in Arizona this year. In June, NRG purchased the district energy system in Phoenix, NRG Energy Center Phoenix, that produces and distributes chilled water to customers in the Phoenix central business district as well as operating and maintaining district energy/combined heat and power plants for Arizona State University and in Tucson. In September, NRG began an initiative with Kennedy Partners to develop solar arrays for Arizona schools to meet their own electricity needs while providing new teaching tools and shade for parking. NRG is also developing a 25 MW solar photovoltaic project for Tucson Electric Power to help meet the energy demands of the state with renewable energy.
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