Why First Solar, Inc. (FSLR) Earnings Could Stay Stuck in the Shade

Page 2 of 2

One unanswered question is what First Solar plans to do with $427.7 million in cash proceeds from a sale of 9.45 million shares of its stock in June. With both SunPower and SolarCity also having raised capital recently, it’s clear that capital demand is strong, but what First Solar actually does with that money will go a long way toward establishing its strategic direction going forward.

In the First Solar earnings report, watch for the company to fill in the blanks on those strategic details, as well as commenting on news last month that China plans to boost its solar capacity in the next couple of years to help support its domestic solar producers. First Solar had looked forward to a shakeout in the Chinese solar industry putting it in a better competitive position, but it might actually produce better earnings if it focuses its efforts instead on catching up in lucrative areas like residential solar.

The article Why First Solar Earnings Could Stay Stuck in the Shade originally appeared on Fool.com is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2