Yahoo Finance Why Is First Solar (FSLR) Up 53.3% Since Last Earnings Report?
A month has gone by since the last earnings report for First Solar (FSLR). Shares have added about 53.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is First Solar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
First Solar Q1 Earnings Beat Estimates, Sales Rise Y/Y
First Solar reported first-quarter 2024 earnings of $2.20 per share, up a massive 450% from the prior-year quarter’s reported earnings of 40 cents per share. The bottom line beat the Zacks Consensus Estimate of $1.90 by 15.8%.
Sales Update
First Solar’s first-quarter net sales were $794.1 million, which surpassed the Zacks Consensus Estimate of $715 million by 11.1%. The top line also improved 44.8% from the year-ago quarter’s $548.3 million.
Operational Highlights
In the first quarter, the company’s gross profit was $346 million, which improved a solid 208.8% from $112.1 million in the year-ago quarter.
Total operating expenses increased 10.6% year over year to $104 million due to higher research and development costs as well as selling, general and administrative expenses.
FSLR reported an operating income of $243.1 million compared with an operating income worth $18 million in the year-ago quarter.
Financial Performance
First Solar had $1.68 billion in cash and cash equivalents as of Mar 31, 2024, down from $1.95 billion as of Dec 31, 2023.
The long-term debt totaled $418.7 million as of Mar 31, 2024 compared with $464.1 million as of Dec 31, 2023.
2024 Guidance
First Solar reiterated the majority of its 2024 guidance. FSLR still expects to generate earnings in the range of $13-$14 per share for 2024. The Zacks Consensus Estimate for FSLR’s 2024 earnings is pegged at $13.57 per share, higher than the midpoint of the company’s guided range.
FSLR continues to project its sales in the range of $4.4-$4.6 billion in 2024. The Zacks Consensus Estimate for the same is pegged at $4.5 billion, which is in line with the midpoint of the company’s guided range.
First Solar still expects gross profit in the band of $2.0-$2.1 billion. Its operating income is anticipated in the $1.5-$1.6 billion range.
Meanwhile, the company still expects module shipments in the band of 15.6-16.3 gigawatts in 2024. First Solar increased its 2024 capital expenditure guidance to the range of $1.8-$2.0 billion from its earlier guided range of $1.7-$1.9 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates revision.
The consensus estimate has shifted -8.48% due to these changes.
VGM Scores
At this time, First Solar has an average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, First Solar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
First Solar is part of the Zacks Solar industry. Over the past month, Enphase Energy (ENPH), a stock from the same industry, has gained 23.2%. The company reported its results for the quarter ended March 2024 more than a month ago.
Enphase Energy reported revenues of $263.34 million in the last reported quarter, representing a year-over-year change of -63.7%. EPS of $0.35 for the same period compares with $1.37 a year ago.
Enphase Energy is expected to post earnings of $0.51 per share for the current quarter, representing a year-over-year change of -65.3%. Over the last 30 days, the Zacks Consensus Estimate has changed -9.4%.
Enphase Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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