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First Solar (FSLR) to Deliver 2.6 GW of Solar Modules to Savion
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First Solar, Inc.’s (FSLR - Free Report) supply agreement with Savion has been announced recently, which involves the delivery of the former’s 2.6 gigawatts (GW) of Series 7 thin-film solar modules. The delivery of the modules is scheduled between 2025 and 2027.
The latest agreement signifies First Solar modules’ enhanced efficiencies and performance. These have been the driver for increased demand.
Can FSLR Continue to Gain From Increased Module Demand?
First Solar enjoys strong demand for its solar module due to its advanced thin-film PV modules that have set industry benchmarks for quality, durability, reliability, design and environmental performance. The strong demand for its solar modules can be gauged by the production of nearly 9.1 GW of solar modules in 2022, which represented a 15% increase in module production from 2021.
The inflation reduction act offers, among other incentives, production tax credits for solar modules and solar module components manufactured in the United States and sold to third parties. These incentives should support the growth momentum of solar product manufacturers like FSLR. Underlined by such incentives to boost demand, the company expects to produce between 11.5 GW and 12.2 GW of solar modules in 2023.
Additionally, the company is eyeing opportunities to gain strength in module manufacturing capacity. In 2022, First Solar announced plans to expand its manufacturing capacity by an additional 4.4 GW. The company aims to achieve this by constructing its fourth manufacturing facility in the United States and augmenting its manufacturing footprint at its current facilities in Ohio.
Such expansion plans complement its strategy to grow in the solar module manufacturing arena. First Solar anticipates that such an expansion strategy should enable the company to boost its manufacturing capacity by approximately 11 GW by 2025.
In light of the aforementioned factors, one may conclude that First Solar is likely to maintain its position as a leading manufacturer of solar modules and may continue to witness the strong demand for its solar modules going forward. This is expected to bolster its revenue generation prospects.
Global Solar Market Boom & Peer Moves
Per the report from Mordor Intelligence, the global solar energy market is poised to witness a CAGR of 12.7% during the 2023-2028 period. Considering such an expanding market size expectation, apart from First Solar, solar companies that have adopted expansion strategies to meet the increase in demand efficiently are as follows:
Enphase Energy (ENPH - Free Report) already enjoys a strong position as a leading U.S. manufacturer of microinverters. The company is also adding an automated line at Flex's factory in Romania. This line, with a quarterly capacity of approximately 750,000 microinverters, will enable a global capacity of nearly six million microinverters per quarter, with plans to escalate capacity.
Enphase boasts a long-term earnings growth rate of 45.4%. Shares of ENPH have rallied 36.7% in the past year.
In January 2023, Canadian Solar (CSIQ - Free Report) announced its plans to add vertically integrated high-efficiency wafer, cell and module capacity, as well as battery system manufacturing capacity, in Yangzhou’s clean energy manufacturing industrial park. The project plan will be carried out in three phases, with phase I being 14 GW of wafer and cell capacity.
The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings suggests a growth rate of a solid 142.5% from the prior-year reported figure. CSIQ has returned 30.9% to its investors in the past year.
Price Movement
In the past year, shares of First Solar have surged 180.1% compared with the industry’s growth of 35%.
JinkoSolar delivered a trailing four-quarter earnings surprise of 133.46%. The Zacks Consensus Estimate for JinkoSolar’s 2023 sales indicates an improvement of 86.1% over the prior-year reported figure.
The Zacks Consensus Estimate for JKS’ 2022 earnings has been revised upward by 20.9% in the past 60 days. The Zacks Consensus Estimate for its 2023 earnings has been revised upward by 10.5% in the past 60 days.
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First Solar (FSLR) to Deliver 2.6 GW of Solar Modules to Savion
First Solar, Inc.’s (FSLR - Free Report) supply agreement with Savion has been announced recently, which involves the delivery of the former’s 2.6 gigawatts (GW) of Series 7 thin-film solar modules. The delivery of the modules is scheduled between 2025 and 2027.
The latest agreement signifies First Solar modules’ enhanced efficiencies and performance. These have been the driver for increased demand.
Can FSLR Continue to Gain From Increased Module Demand?
First Solar enjoys strong demand for its solar module due to its advanced thin-film PV modules that have set industry benchmarks for quality, durability, reliability, design and environmental performance. The strong demand for its solar modules can be gauged by the production of nearly 9.1 GW of solar modules in 2022, which represented a 15% increase in module production from 2021.
The inflation reduction act offers, among other incentives, production tax credits for solar modules and solar module components manufactured in the United States and sold to third parties. These incentives should support the growth momentum of solar product manufacturers like FSLR. Underlined by such incentives to boost demand, the company expects to produce between 11.5 GW and 12.2 GW of solar modules in 2023.
Additionally, the company is eyeing opportunities to gain strength in module manufacturing capacity. In 2022, First Solar announced plans to expand its manufacturing capacity by an additional 4.4 GW. The company aims to achieve this by constructing its fourth manufacturing facility in the United States and augmenting its manufacturing footprint at its current facilities in Ohio.
Such expansion plans complement its strategy to grow in the solar module manufacturing arena. First Solar anticipates that such an expansion strategy should enable the company to boost its manufacturing capacity by approximately 11 GW by 2025.
In light of the aforementioned factors, one may conclude that First Solar is likely to maintain its position as a leading manufacturer of solar modules and may continue to witness the strong demand for its solar modules going forward. This is expected to bolster its revenue generation prospects.
Global Solar Market Boom & Peer Moves
Per the report from Mordor Intelligence, the global solar energy market is poised to witness a CAGR of 12.7% during the 2023-2028 period. Considering such an expanding market size expectation, apart from First Solar, solar companies that have adopted expansion strategies to meet the increase in demand efficiently are as follows:
Enphase Energy (ENPH - Free Report) already enjoys a strong position as a leading U.S. manufacturer of microinverters. The company is also adding an automated line at Flex's factory in Romania. This line, with a quarterly capacity of approximately 750,000 microinverters, will enable a global capacity of nearly six million microinverters per quarter, with plans to escalate capacity.
Enphase boasts a long-term earnings growth rate of 45.4%. Shares of ENPH have rallied 36.7% in the past year.
In January 2023, Canadian Solar (CSIQ - Free Report) announced its plans to add vertically integrated high-efficiency wafer, cell and module capacity, as well as battery system manufacturing capacity, in Yangzhou’s clean energy manufacturing industrial park. The project plan will be carried out in three phases, with phase I being 14 GW of wafer and cell capacity.
The Zacks Consensus Estimate for Canadian Solar’s 2022 earnings suggests a growth rate of a solid 142.5% from the prior-year reported figure. CSIQ has returned 30.9% to its investors in the past year.
Price Movement
In the past year, shares of First Solar have surged 180.1% compared with the industry’s growth of 35%.
Image Source: Zacks Investment Research
Zacks Rank & a Stock to Consider
First Solar currently carries a Zacks Rank #3 (Hold). One better-ranked stock from the same industry is JinkoSolar (JKS - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
JinkoSolar delivered a trailing four-quarter earnings surprise of 133.46%. The Zacks Consensus Estimate for JinkoSolar’s 2023 sales indicates an improvement of 86.1% over the prior-year reported figure.
The Zacks Consensus Estimate for JKS’ 2022 earnings has been revised upward by 20.9% in the past 60 days. The Zacks Consensus Estimate for its 2023 earnings has been revised upward by 10.5% in the past 60 days.