CHICAGO, Aug. 8, 2011 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: First Solar Inc. (Nasdaq: FSLR), Suntech Power Holdings Co. Ltd. (NYSE: STP) Public Storage (NYSE: PSA) Consolidated Edison Inc. (NYSE: ED) and American Electric Power Co. Inc. (NYSE: AEP).
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Here are highlights from Friday's Analyst Blog:
First Solar Disappoints
First Solar Inc. (Nasdaq: FSLR) reported second quarter 2011 results with earnings per share of 70 cents, considerably below the Zacks Consensus Estimate of 93 cents and the year-ago figure of $1.33 per share. The downside reflects lower average selling prices (''ASPs'') and increased investment in the Utilities Systems business and research and development.
Guidance
The company expects earnings per share in the range of $9.00 to $9.50 for 2011. It expects net sales to be in the range of $3.6–$3.7 billion. Capital expenditure is expected to be in the range of $800 million to $900 million.
Overall, the company anticipates stronger performance in the second half of 2011 driven by projects from its systems pipeline, development of new markets, execution of cost reduction plans and improvement in module efficiencies.
At the Peer
One of the company's competitors, Suntech Power Holdings Co. Ltd. (NYSE: STP) is expected to release its second quarter results on August 15, 2011. The Zacks Consensus Estimates for second quarter 2011 and fiscal year 2011 are currently at 19 cents per share and 85 cents per share, respectively.
Our Take
First Solar, the largest stand-alone solar module manufacturer in terms of market capitalization, is steadily ramping up capacity. The company is expected to benefit greatly from the steady economic recovery as well as favorable legislations supporting PV installations.
Moreover, with a focus on branching out its revenue base geographically, technological enhancements and cost minimization, the company is adding a distinct edge over its competitors.
However, its short-term growth may be partially hampered by the volatile euro, apprehension over reduction in German subsidies, falling crystalline silicon prices and the modules' oversupply situation in the market. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
First Solar is headquartered in Phoenix, Arizona. It designs, manufactures, and sells solar electric power modules using a proprietary thin film semiconductor technology. The company's solar modules manufacturing facilities are located in Perrysburg, Ohio in the US, Frankfurt (Oder) in Germany and at Kulim in Malaysia. The company also has a research and development facility located at its Perrysburg, Ohio manufacturing facility.
Public Storage Tops Estimates
Public Storage (NYSE: PSA), a leading real estate investment trust (REIT) operating self-storage facilities, reported second quarter 2011 FFO (funds from operations) of $1.39 per share, compared with $0.92 in the year-earlier quarter.
Funds from operations, a widely used metric to gauge the performance of REITs, is obtained after adding depreciation and amortization and other non-cash expenses to net income.
Excluding several non-recurring items, FFO for second quarter 2011 was $1.43 per share compared with $1.27 in the year-ago quarter. Recurring FFO for second quarter 2011 exceeded the Zacks Consensus Estimate by 5 cents.
During the reported quarter, Public Storage recorded an increase in total revenues to $434.8 million from $407.6 million in the year-earlier quarter. Total revenues for the reported quarter were well ahead of the Zacks Consensus Estimate of $409 million.
Same-store revenues increased 4.0% year-over-year to $371.9 million during the quarter, while net operating income climbed 6.2% to $249.9 million. The increase in same-store revenues was primarily due to a 1.4% increase in average occupancy and a 2.2% rise in realized rent per occupied square foot.
ConEd Beats EPS, Sales Miss
Consolidated Edison Inc. (NYSE: ED), also known as ConEd, announced second quarter fiscal 2011 results with pro forma earnings per share ('EPS') of 57 cents above the Zacks Consensus Estimate of 53 cents and the prior-year figure of 51 cents. GAAP and pro forma EPS in the reported quarter were the same while GAAP EPS in the prior-year quarter was 65 cents.
The EPS upside was driven by changes in the rate plans of ConEd's utility subsidiaries. Incremental revenues from revised rate plans helped offset the increase in certain operations and maintenance expenses, and depreciation and property taxes.
Outlook
ConEd reaffirmed its pro forma EPS guidance range of $3.45 – $3.65 for fiscal 2011.
Peer Comparison
Recently, one of ConEd's peers, American Electric Power Co. Inc. (NYSE: AEP) reported second quarter 2011 adjusted EPS of 73 cents, down from the year-ago figure of 74 cents and the Zacks Consensus Estimate of 76 cents.
Our Take
Consolidated Edison's robust portfolio of regulated utility assets provides a steady earnings base and significant growth prospects for the long run. Its cost management strategies keep the operations efficient and the company strong and sustainable. Going forward, the growth momentum will depend on positive investment factors, such as favorable regulatory decisions, higher electricity rates in New York, revenue insulation from demand volatility and infrastructure improvement programs.
However, valuation continues to be restrained by the expected lower demand for electricity, earnings dilutive issuances and regulatory risks. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
New York City-based Consolidated Edison, Inc. is a diversified utility holding company with subsidiaries engaged in both regulated and unregulated businesses. ConEd's regulated businesses operate through two subsidiaries — Consolidated Edison Company of New York ('CECONY') and Orange and Rockland Utilities ('O&R').
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