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First Solar (FSLR) Q3 Earnings Lag Estimates, Sales Down Y/Y
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Shares of First Solar, Inc. (FSLR - Free Report) declined 1.3% to $115.03 on Nov 8, reflecting negative investor sentiments following the company’s third-quarter 2021 results.
The company reported third-quarter 2021 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 33.3%. The bottom line declined 71% from the prior-year quarter’s earnings of $1.45.
Sales Update
First Solar’s third-quarter sales were $584 million, which lagged the Zacks Consensus Estimate of $699 million by 16.5%. The top line fell 37.1% from the year-ago quarter’s $927.6 million. The decrease was primarily due to lower systems segment revenues.
First Solar, Inc. Price, Consensus and EPS Surprise
In the third quarter, gross profit totaled $124.6 million, which decreased significantly from $293 million in the year-ago quarter.
Total operating expenses slumped 16.3% to $71.8 million due to lower selling, general and administrative costs, and production start-up cost.
The company reported an operating income of $50.9 million compared with an operating income of $207.2 million in the year-ago quarter. The downside was due to significantly lower gross profit in the quarter.
Financial Performance
First Solar had $1,367.5 million of cash and cash equivalents as of Sep 30, 2021, up from $1,227 million as of Dec 31, 2020.
Long-term debt totaled $241.5 million at the end of the third quarter compared with $237.7 million as of Dec 31, 2020.
2021 Guidance
The company still expects earnings to be $4.00-$4.60 per share on sales of $2.88-3.10 billion in 2021.
The Zacks Consensus Estimate for 2021 earnings is pegged at $4.22 per share, which lies below the mid-point of the company’s projected range. The Zacks Consensus Estimate for 2021 sales stands at $2.94 billion that lies below the mid-point of the guided range.
The company continues to expect gross profit in the range of $695 million to $760 million, while operating income is anticipated to be $545-$625 million.
Meanwhile, First Solar forecasts shipments of 7.6-8.0 gigawatts.
Zacks Rank
First Solar currently carries a Zacks Rank #4 (Sell).
Enphase Energy(ENPH - Free Report) reported third-quarter adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%.
SolarEdge (SEDG - Free Report) reported third-quarter adjusted earnings of $1.45 per share, which beat the Zacks Consensus Estimate of $1.38 by 5.1%.
Sunrun (RUN - Free Report) reported third-quarter adjusted earnings of 11 cents, which outpaced the Zacks Consensus Estimate of 5 cents per share.
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First Solar (FSLR) Q3 Earnings Lag Estimates, Sales Down Y/Y
Shares of First Solar, Inc. (FSLR - Free Report) declined 1.3% to $115.03 on Nov 8, reflecting negative investor sentiments following the company’s third-quarter 2021 results.
The company reported third-quarter 2021 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 33.3%. The bottom line declined 71% from the prior-year quarter’s earnings of $1.45.
Sales Update
First Solar’s third-quarter sales were $584 million, which lagged the Zacks Consensus Estimate of $699 million by 16.5%. The top line fell 37.1% from the year-ago quarter’s $927.6 million. The decrease was primarily due to lower systems segment revenues.
First Solar, Inc. Price, Consensus and EPS Surprise
First Solar, Inc. price-consensus-eps-surprise-chart | First Solar, Inc. Quote
Operational Highlights
In the third quarter, gross profit totaled $124.6 million, which decreased significantly from $293 million in the year-ago quarter.
Total operating expenses slumped 16.3% to $71.8 million due to lower selling, general and administrative costs, and production start-up cost.
The company reported an operating income of $50.9 million compared with an operating income of $207.2 million in the year-ago quarter. The downside was due to significantly lower gross profit in the quarter.
Financial Performance
First Solar had $1,367.5 million of cash and cash equivalents as of Sep 30, 2021, up from $1,227 million as of Dec 31, 2020.
Long-term debt totaled $241.5 million at the end of the third quarter compared with $237.7 million as of Dec 31, 2020.
2021 Guidance
The company still expects earnings to be $4.00-$4.60 per share on sales of $2.88-3.10 billion in 2021.
The Zacks Consensus Estimate for 2021 earnings is pegged at $4.22 per share, which lies below the mid-point of the company’s projected range. The Zacks Consensus Estimate for 2021 sales stands at $2.94 billion that lies below the mid-point of the guided range.
The company continues to expect gross profit in the range of $695 million to $760 million, while operating income is anticipated to be $545-$625 million.
Meanwhile, First Solar forecasts shipments of 7.6-8.0 gigawatts.
Zacks Rank
First Solar currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
Enphase Energy(ENPH - Free Report) reported third-quarter adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%.
SolarEdge (SEDG - Free Report) reported third-quarter adjusted earnings of $1.45 per share, which beat the Zacks Consensus Estimate of $1.38 by 5.1%.
Sunrun (RUN - Free Report) reported third-quarter adjusted earnings of 11 cents, which outpaced the Zacks Consensus Estimate of 5 cents per share.