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First Solar (FSLR) Surpasses Q2 Sales, Reaffirms 2023 View

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First Solar, Inc. (FSLR - Free Report) reported second-quarter 2023 earnings of $1.59 per share, which improved 205.8% from the prior-year quarter’s earnings of 52 cents per share. The Zacks Consensus Estimate for second-quarter earnings was pegged at 95 cents.

Sales Update

First Solar’s second-quarter net sales were $810.7 million, which beat the Zacks Consensus Estimate of $720 million by 12.6%. The top line improved by 30.6% from the year-ago quarter’s $620.9 million.

The increase was primarily driven by a rise in the volume of modules sold, including the commencement of sales of the company’s next-generation Series 7 modules.

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 second quarter, the gross profit totaled $310.4 million, which improved massively from a loss of $23.2 million in the year-ago quarter.

Total operating expenses increased 83.6% to $142 million due to higher research and development costs, SG&A expenses and production startup costs.

FSLR reported an operating income of $168.5 million compared with $144.8 million in the year-ago quarter.

Financial Performance

First Solar had $829.9 million in cash and cash equivalents as of Jun 30, 2023, down from $1,481.3 million as of Dec 31, 2022.

The long-term debt totaled $437.4 million as of Jun 30, 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 $7.29 per share, lower than the midpoint of the company’s guidance range. The Zacks Consensus Estimate for 2023 sales stands at $3.51 billion, near the midpoint of the guided range.

First Solar expects 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 #3 (Hold). 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 second-quarter 2023 adjusted earnings of $1.47 per share, which highlights a 37.4% improvement from $1.07 per share reported in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.27 by 15.8%.

Enphase Energy’s second-quarter revenues of $711.1 million missed the Zacks Consensus Estimate of $727 million by 2.2%. However, the top line soared 34.1% from the prior-year quarter’s reported figure of $530.2 million.

Upcoming Releases

SolarEdge Technologies (SEDG - Free Report) : The Zacks Consensus Estimate for SolarEdge’s second-quarter sales implies an improvement of 35.9% from the prior-year reported figure.

SEDG delivered an earnings surprise of 46.46% in the last reported quarter. Estimates for its second-quarter earnings, pegged at $2.55 per share, indicate an improvement of 168.4% from the year-ago quarter’s tally.

Sunrun (RUN - Free Report) : The Zacks Consensus Estimate for its second-quarter sales is pegged at $621.9 million, suggesting growth of 6.4% from the year-ago quarter’s tally.

Estimates for its second-quarter bottom line, pegged at a loss of 34 cents per share, call for a deterioration from the year-ago quarter’s loss of 6 cents.

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