Needham Reshuffles First Solar's Revenue And EPS Estimates Because Of This

First Solar, Inc. (NASDAQ: FSLR)'s revenue and EPS estimates were reshuffled by investment research firm Needham on Monday.

Needham has a Hold stock rating on the stock; of note, the firm downgraded First Solar to a Hold rating from Buy on December 10.

Due to significant rebound of First Solar's share price following the extension of the U.S. Solar Investment Tax Credit (ITC), and with shares trading within less than 10 percent of the firm's previous price target of $70, Needham has made adjustments to estimates, the firm commented in a report released Monday.

"We believe the extension of the ITC will enable FSLR to deliver more consistent revenue in the next few years, but lower pricing and margins of project COD beyond 2016 should lead to reduced profitability beyond 2016," Needham noted.

"Due to the extension of the U.S. solar ITC, we expect FSLR to deliver lower revenue in 2016 as the ITC eliminates the need for the company to rush project completion within 2016," the firm noted. However, it added: "we now project a smaller decline in 2017, and raise our 2017 revenue/EPS to $3.70B/$2.81."

The firm expects revenue and EPS from First Solar of $3.8 billion and $4.23 per share in 2016, and revenue of $3.7 billion and $2.81 in 2017.