So after forecasting lower revenue, First Solar (FSLR) is soaring today because its earnings for 2007 are expected to come in ahead of previous estimates. In a report warning that the “devil is in the details“, FBR notes that 2009 will be helped by a much lower tax rate (11% vs. 25%), contributing $1.12 to earnings.
But why is that a problem?
This whole industry is still, in large part, a play on politics. We listened to the conference call yesterday. Much of the call was dedicated to political decisions in Europe — the actual market (as in, real market forces) seemed almost secondary. The market isn’t punishing First Solar, because right now politics, regulation and tax issues are what’s important.
When political issues become secondary, then we’ll know that green energy has really arrived.