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First Solar (FSLR) Q1 Earnings Miss Estimates, Sales Rise Y/Y

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First Solar, Inc. (FSLR - Free Report) reported first-quarter 2023 earnings of 40 cents per share, missing the Zacks Consensus Estimate of earnings of 99 cents by 59.6%. However, the bottom line improved significantly from the prior-year quarter’s loss of 41 cents per share.

Sales Update

First Solar’s first-quarter net sales were $548 million, which missed the Zacks Consensus Estimate of $724 million by 23.7%. However, the top line improved by 49.4% from the year-ago quarter’s $367 million.

First Solar, Inc. Price, Consensus and EPS Surprise

First Solar, Inc. Price, Consensus and EPS Surprise

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

Operational Highlights

In the first quarter, the gross profit totaled $112.1 million, which improved massively by 877.5% from $11.5 million in the year-ago quarter.

Total operating expenses increased 32.1% to $94 million due to higher research and development costs, SG&A expenses and production startup costs.

The company reported an operating income of $18 million against an operating loss of $57.8 million in the year-ago quarter.

Financial Performance

First Solar had $906.6 million of cash and cash equivalents as of Mar 31, 2023, down from $1,481.3 million as of Dec 31, 2022.

The long-term debt totaled $320.4 million as of Mar 31, 2023 compared with $184.3 million as of Dec 31, 2022.

2023 Guidance

First Solar reaffirmed its 2023 earnings guidance. FSLR expects earnings in the range of $7.00-$8.00 per share on sales in the $3.4-3.6 billion range in 2023.

The Zacks Consensus Estimate for 2023 earnings is pegged at $7.22 per share, lower than the midpoint of the company’s guidance range. The Zacks Consensus Estimate for 2023 sales stands at $3.48 billion, near the midpoint of the guided range.

First Solar expects a gross profit in the range of $1.2-$1.3 billion. The operating income is now anticipated in the band of $745-$870 million.

Meanwhile, First Solar now expects shipments in the band of 11.8-12.3 gigawatts in 2023.

Zacks Rank

First Solar currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Recent Solar Release

Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2023 adjusted earnings of $1.37 per share, highlighting a solid 73.4% improvement from the 79 cents reported in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.21 by 13.2%.

Enphase Energy’s first-quarter revenues of $726 million beat the Zacks Consensus Estimate of $723 million by 0.4%. The top line soared 64.5% from the prior-year quarter’s reported figure of $441.3 million.

Upcoming Releases

SolarEdge Technologies (SEDG - Free Report) is slated to release first-quarter 2023 results on May 5. SolarEdge boasts a long-term earnings growth rate of 30.1%.

The Zacks Consensus Estimate for SEDG’s earnings is pegged at $1.95 per share, implying a 62.5% improvement from the year-ago quarter’s reported figure. The same for the company’s sales stands at $929.4 million, indicating a 41.9% increase from that reported in the comparable period of 2022.

SunPower Corporation (SPWR - Free Report) is scheduled to release first-quarter 2023 results on May 5. SunPower has a four-quarter average negative earnings surprise of 9.05%.

The stock boasts a long-term earnings growth rate of 38.7%. The Zacks Consensus Estimate for SunPower’s sales stands at $428.7 million, indicating a 27.6% improvement from the year-ago quarter’s reported number.

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