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First Solar (FSLR) Reports Wider Q3 Loss, Revenues Rise Y/Y
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First Solar, Inc. (FSLR - Free Report) reported a third-quarter 2022 loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. The bottom line declined significantly from the prior-year quarter’s earnings of 52 cents per share.
Sales Update
First Solar’s third-quarter sales were $628.9 million, which missed the Zacks Consensus Estimate of $770 million by 18.4%. However, the top line improved by 1.3% from the year-ago quarter’s $620.9 million, primarily due to increased module sales.
First Solar, Inc. Price, Consensus and EPS Surprise
In the third quarter, the gross profit totaled $20.9 million, which improved significantly from the gross loss of $23.2 million in the year-ago quarter.
Total operating expenses increased 23.2% to $95.3 million due to higher SG&A costs, research and development costs and production startup costs.
The company reported an operating loss of $68 million compared to the operating income of $145 million in the year-ago quarter. This was mainly due to gains from the sale of the company’s Japan project development platform recorded in the prior quarter and higher logistics charges in the third quarter.
Financial Performance
First Solar had $1,150.9 million of cash and cash equivalents as of Sep 30, 2022, down from $1,450.7 million as of Dec 31, 2021.
The long-term debt totaled $254.2 million as of Sep 30, 2022 compared with $236 million as of Dec 31, 2021.
2022 Guidance
First Solar updated its 2022 earnings guidance. FSLR now expects a loss in the range of 0.65-0.35 cents per share on sales of the $2.6-2.7 billion range in 2022. These compare to the prior guidance of earnings in the range of (0.25)-0.25 cents per share and sales in the range of $2.55-2.8 billion.
The Zacks Consensus Estimate for the 2022 loss is pegged at 25 cents per share. The Zacks Consensus Estimate for 2022 sales stands at $2.63 billion, lower than the midpoint of the guided range.
The company now expects a gross profit in the range of $75-$110 million compared with the prior guidance in the $115-$165 million range. The operating income is now anticipated in the band of $(30)-$20 million compared to the earlier expectation in the range of $5-$70 million.
Meanwhile, First Solar now expects shipments in the band of 9.1-9.4 gigawatts in 2022 compared with the prior guidance in the band of 8.9-9.4 gigawatts.
Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter.
Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million.
Upcoming Solar Releases
SolarEdge Technologies (SEDG - Free Report) is slated to release third-quarter 2022 results on Nov 7. SolarEdge boasts a long-term earnings growth rate of 27.3%.
The Zacks Consensus Estimate for SEDG’s third-quarter earnings, pegged at $1.45 per share, is on par with the year-ago reported figure. The Zacks Consensus Estimate for SolarEdge’s third-quarter sales is pegged at $826.7 million.
SunPower Corporation (SPWR - Free Report) is scheduled to release third-quarter 2022 results on Nov 8. SunPower has a four-quarter negative earnings surprise of 37.08%.
The Zacks Consensus Estimate for SPWR’s third-quarter earnings, pegged at 10 cents per share, implies year-over-year growth of 66.7%.
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First Solar (FSLR) Reports Wider Q3 Loss, Revenues Rise Y/Y
First Solar, Inc. (FSLR - Free Report) reported a third-quarter 2022 loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. The bottom line declined significantly from the prior-year quarter’s earnings of 52 cents per share.
Sales Update
First Solar’s third-quarter sales were $628.9 million, which missed the Zacks Consensus Estimate of $770 million by 18.4%. However, the top line improved by 1.3% from the year-ago quarter’s $620.9 million, primarily due to increased module sales.
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, the gross profit totaled $20.9 million, which improved significantly from the gross loss of $23.2 million in the year-ago quarter.
Total operating expenses increased 23.2% to $95.3 million due to higher SG&A costs, research and development costs and production startup costs.
The company reported an operating loss of $68 million compared to the operating income of $145 million in the year-ago quarter. This was mainly due to gains from the sale of the company’s Japan project development platform recorded in the prior quarter and higher logistics charges in the third quarter.
Financial Performance
First Solar had $1,150.9 million of cash and cash equivalents as of Sep 30, 2022, down from $1,450.7 million as of Dec 31, 2021.
The long-term debt totaled $254.2 million as of Sep 30, 2022 compared with $236 million as of Dec 31, 2021.
2022 Guidance
First Solar updated its 2022 earnings guidance. FSLR now expects a loss in the range of 0.65-0.35 cents per share on sales of the $2.6-2.7 billion range in 2022. These compare to the prior guidance of earnings in the range of (0.25)-0.25 cents per share and sales in the range of $2.55-2.8 billion.
The Zacks Consensus Estimate for the 2022 loss is pegged at 25 cents per share. The Zacks Consensus Estimate for 2022 sales stands at $2.63 billion, lower than the midpoint of the guided range.
The company now expects a gross profit in the range of $75-$110 million compared with the prior guidance in the $115-$165 million range. The operating income is now anticipated in the band of $(30)-$20 million compared to the earlier expectation in the range of $5-$70 million.
Meanwhile, First Solar now expects shipments in the band of 9.1-9.4 gigawatts in 2022 compared with the prior guidance in the band of 8.9-9.4 gigawatts.
Zacks Rank
First Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Another Recent Solar Release
Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter.
Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million.
Upcoming Solar Releases
SolarEdge Technologies (SEDG - Free Report) is slated to release third-quarter 2022 results on Nov 7. SolarEdge boasts a long-term earnings growth rate of 27.3%.
The Zacks Consensus Estimate for SEDG’s third-quarter earnings, pegged at $1.45 per share, is on par with the year-ago reported figure. The Zacks Consensus Estimate for SolarEdge’s third-quarter sales is pegged at $826.7 million.
SunPower Corporation (SPWR - Free Report) is scheduled to release third-quarter 2022 results on Nov 8. SunPower has a four-quarter negative earnings surprise of 37.08%.
The Zacks Consensus Estimate for SPWR’s third-quarter earnings, pegged at 10 cents per share, implies year-over-year growth of 66.7%.