First Solar, Inc. (FSLR) reported its third-quarter financial results after the market closed on Tuesday, revealing a mixed bag of news for investors. While the company saw a strong backlog of solar projects, its earnings and revenue fell short of analyst expectations. Here’s a breakdown of the key takeaways from the quarter:
Earnings and Revenue Miss Expectations
First Solar reported earnings of $2.91 per share for the quarter, missing the analyst consensus estimate of $3.13. The company attributed the shortfall to a $50 million product warranty reserve charge. Revenue for the quarter reached $887.67 million, also missing the analyst consensus estimate of $1.07 billion.
Strong Backlog Despite Challenges
Despite the earnings miss, First Solar reported a robust year-to-date net bookings of 4.0 GW, adding 0.4 GW since its second-quarter earnings call. The company boasts an expected sales backlog of 73.3 GW, indicating a promising pipeline of future projects.
CEO Highlights Long-Term Growth Strategy
In a statement, First Solar CEO Mark Widmar emphasized the company’s commitment to a long-term growth strategy, despite the challenges of industry volatility and political uncertainty. “As we approach the end of 2024, we remain pleased with the progress made across our business, navigating against a backdrop of industry volatility and political uncertainty, with a continued focus on balancing growth, profitability and liquidity,” Widmar stated. He added that First Solar’s disciplined approach will help the company navigate the upcoming U.S. elections and the continued volatility within the solar manufacturing industry.
Revised Outlook for 2024
In light of the current market conditions, First Solar revised its financial outlook for 2024. The company now expects net sales to be between $4.1 billion and $4.25 billion, down from the previous range of $4.4 billion to $4.6 billion. Similarly, the full-year earnings forecast has been adjusted from between $13 and $14 per share to between $13 and $13.50 per share. This revised outlook reflects the impact of industry headwinds on First Solar’s operations.
Stock Price Reaction
First Solar shares fell by 4.84% after hours following the earnings announcement, closing at $190.38 at the time of publication. The market’s response reflects investor concerns about the company’s revised outlook and the challenges facing the solar industry.
Overall, First Solar’s third-quarter results highlight the dynamic landscape of the solar industry. While the company is navigating through a period of uncertainty, it remains committed to its long-term growth strategy and continues to see strong demand for its products. Investors will be closely watching the company’s progress in navigating these industry headwinds and its ability to maintain its strong market position in the future.
