First Solar (FSLR) stock was torched late Wednesday when the No. 1 installer reported Q1 sales that missed Wall Street's mark by more than $100 million and announced that CFO Mark Widmar would succeed CEO James Hughes.
In after-hours trading, First Solar stock was down 4.5% after closing up 1.3% in the regular session. Shares are down 6% since January, outperforming No. 2 rival SunPower (SPWR) stock, which is down 27% over the past four months.
For Q1, First Solar reported $848 million in sales, up 3% year over year, and $1.66 earnings per share, swinging from a 62-cent per-share loss in the year-earlier period. Sales fell $94 million sequentially and missed analyst views for $106% year-over-year growth.
But EPS topped expectations for 93 cents.
First Solar blamed the timing of systems-revenue recognition for the sequential drop in sales, but noted the plunge was partially offset by higher revenue from the Desert Stateline project.
The company bumped up the low end of its full-year EPS guidance to $4.10-$4.50 from earlier expectations for $4-$4.50. EPS would be down 20% at the midpoint of guidance, potentially signaling a trough, according to Deutsche Bank analyst Vishal Shah.
Full-year sales guidance for $3.8 billion to $4 billion was unchanged and would be up 9% at the midpoint.
Chairman Michael Ahearn praised Hughes for his four years of leadership. His exit had not been expected.
"Leadership succession planning has been a joint effort between Jim and the board of directors," First Solar spokesman Steve Krum told IBD via email. "All parties are supportive of this change, which was part of an existing plan. The board and Jim believe that Mark’s proven leadership and expertise make him an ideal choice for leading the company into its next phase of growth."
Hughes will officially step down June 30, but will remain on the board and continue in an advisory role.
"Under Jim's astute guidance, First Solar achieved the strongest technology position in our history, with record bookings of new business and unparalleled financial strength in the industry," Ahearn said in a statement.
