First Solar Posts Positive Earnings in Face of ITC Investigation of Suniva

First Solar Posts Positive Earnings in Face of ITC Investigation of Suniva

Research  these Stocks on Kapitall’s Playground Now

research now


The nation’s largest solar panel manufacturer First Solar, Inc. (FSLR), blew away Wall Street’s expectations with their second-quarter results.

After hitting a 52-week low on the stock market in April, the Tempe, Arizona-based photovoltaic (PV) company finished the spring and early summer with an impressively solid performance, mostly due to declining costs of production, one-time tax benefits, and increasing third-party demand and purchases of their modules and systems.

First Solar’s project sales got a huge boost earlier this month when EDF Renewable Energy (EDF RE) purchased Switch Station 1 and 2, which are still under construction in the Nevada desert. Utility-sized project sales and their price tags should continue increasing through the year as more and more energy suppliers add to their solar components.

Sales of their trademark Series 4 module exceeded expectations as well, while at the same time their innovative Series 6 product readied for manufacturing at a factory located in Ohio. Advance sales have already begun for the latter, which is scheduled to hit the market in next year’s second-quarter.

The biggest factor driving demand domestically and overseas was Georgia-based Suniva's Section 201 filing with the U.S. government's International Trade Commission (ITC). This outlines the agency's investigation into Suniva's request for certain protections from Chinese competitors under Sections 201 and 202 of the Trade Act. They are asking for "global safegaurd relief" on imports of their silicon solar cells.

In fact, industry observers are taking First Solar's second-quarter report as early evidence of the filing's effects.


Possible Impact

Though the ITC won't make a ruling on the case until September — and even then won’t make policy recommendations to the Trump administration until November — the filing itself, which occurred soon after First Solar hit a year-to-year low, and has already spooked third-party buyers into hoarding solar panels and systems, resulting in the company's unexpectedly strong performance between May and July in the latter half of the quarter.

Industry experts and observers remain unsure in which direction the ITC will ultimately rule. However, Trump's very own protectionist campaign promises, which he’s delivered on in office, point in a negative direction for solar prospects in the U.S.

If the ITC rules in Suniva's favor which is majority-owned by Chinese firm, Shunfeng International, an import tariff would drive up the cost of all PV systems (residential, commercial, and utility-grade), depress sales, and cause installations to slump, reversing a multi-year trend that has been a boon to the renewable energy sector.

All eyes in the industry will be on the case as it develops, and because of the company's domestic location, innovative technologies, and now upward trajectory, First Solar will be a major focal point.



© New Kapitall Holdings LLC. All rights reserved. Kapitall Wire is a division of New Kapitall Holdings LLC. Kapitall Generation, LLC is a wholly owned subsidiary of New Kapitall Holdings LLC. Kapitall Wire, which is not a broker/dealer, offers free cutting edge content and commentary and is produced for informational purposes only and should not be construed as research. Kapitall Wire is a product offered by New Kapitall Holdings, however, KapGen compliance personnel will oversee all Kapitall Wire material prior to release. 


6 responses to “First Solar Posts Positive Earnings in Face of ITC Investigation of Suniva”

  1. priyaangel says:

    Thanks for taking your precious time to discuss about the solar panels and the world’s best manufacturers of the same. I was searching for such a good article related to this and I found them really interesting and informative. Keep your works alive like this!
    hotel metropole catalina deal

  2. play game says:

    You guys play the latest free online happy wheel game it is the one of the best site for the game lovers you create the best score to lay this hard i sure you like this very much try this online one time thanks for play this on the net.

  3. Deana johnson says:

    I believe Solar Panels is a very worthy product and in new generation we very essential it. It changes solar energy into electrical energy. I think Solar Panels is a very expensive product but I was read review at Quality Essay | Essay Writing Online about Solar system because they are very beneficial for people. We can use this electrical energy for all power standby systems such as T.V., Tube Lights, Fans, and Fridge etc. Because it transforms Solar Energy into electrical energy.

  4. xsunxsolar says:

    Very strong step indeed towards the nature.

Leave a Reply

Your email address will not be published. Required fields are marked *

  • See Most Recent Articles