Back to top

Image: Bigstock

What's in the Offing for First Solar (FSLR) in Q3 Earnings?

Read MoreHide Full Article

First Solar, Inc. (FSLR - Free Report) is slated to report third-quarter 2022 results on Oct 27 after the closing bell. 

In the last reported quarter, the company delivered an earnings surprise of 73.33%. First Solar has a trailing four-quarter earnings surprise of 13.74%, on average.  

Factors to Note

Strong bookings, customer growth and solid shipments are expected to have contributed to the third-quarter sales of the company. Additionally, the increased demand for solar modules and sales freight recoveries is expected to have contributed to FSLR’s top line in the third quarter.

Moreover, sale proceeds from the divestment of its operating & maintenance platforms in Japan might have contributed to the performance of First Solar’s top line in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $761.9 million, suggesting growth of 30.6% from the year-ago reported figure.

From the cost perspective, headwinds, like inflationary pressure, higher freight and fuel costs and increased production start-up expenses, might have dampened the earnings of the company in the soon-to-be-reported quarter. Also, higher impairment charges due to Japan’s operating & maintenance platforms are likely to have dampened FSLR’s earnings in the to-be-reported quarter.

The Zacks Consensus Estimate for First Solar’s third-quarter earnings is pegged at a loss of 25 cents per share, suggesting a deterioration from the year-ago quarter’s reported earnings.

First Solar, Inc. Price and EPS Surprise

First Solar, Inc. Price and EPS Surprise

First Solar, Inc. price-eps-surprise | First Solar, Inc. Quote

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for FSLR this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: First Solar currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are three companies you may want to consider from the same sector as they have the right combination of elements to post an earnings beat this season:

Devon Energy (DVN - Free Report) currently has an Earnings ESP of +0.29% and a Zacks Rank #2. The Zacks Consensus Estimate for Devon’s third-quarter earnings implies a year-over-year improvement of 97.2% from the prior-year reported figure.

The Zacks Consensus Estimate for Devon’s third-quarter sales, pegged at $4.91 billion, suggests a year-over-year improvement of 41.8% from the prior-year reported figure. DVN delivered an earnings surprise of 12.29% in the last reported quarter.

Array Technologies (ARRY - Free Report) currently has an Earnings ESP of +11.83% and a Zacks Rank #1. The Zacks Consensus Estimate for its third-quarter earnings is pegged at 12 cents per share, implying a solid improvement from the year-ago quarter’s reported loss.

The Zacks Consensus Estimate for Array’s third-quarter sales suggests year-over-year growth of 107.8% from the prior-year reported figure. ARRY has a four-quarter earnings surprise of 40.48%.

Chesapeake Energy (CHK - Free Report) currently has an Earnings ESP of +0.42% and a Zacks Rank #2. The Zacks Consensus Estimate for Chesapeake’s third-quarter earnings, pegged at $4.48, implies a year-over-year improvement of a solid 88.2% from the prior-year reported figure.

The Zacks Consensus Estimate for Chesapeake’s third-quarter sales suggests year-over-year growth of 105.7% from the prior-year reported figure. CHK has a four-quarter earnings surprise of 24.48%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar

Published in