TEMPE, Ariz. - First Solar, Inc. (NASDAQ:FSLR) reported a positive start to 2024, with first-quarter earnings and revenue surpassing analyst expectations. The solar technology company posted earnings per share (EPS) of $2.20, which was $0.20 higher than the analyst estimate of $2.00. Revenue for the quarter reached $794.11 million, exceeding the consensus estimate of $718.19 million.
The stock responded positively to the earnings release, inching up 1.9%.
The company's financial performance in the first quarter marked a decrease from the previous quarter's net sales of $1.158 billion and net income per diluted share of $3.25. Despite the sequential decline, which was attributed to an expected seasonal reduction in module sales volume, the results represent a significant increase compared to the first quarter of the previous year, which saw net sales of $548.28 million.
First Solar's net cash balance stood at $1.4 billion at the end of the quarter, a drop from $1.6 billion at the end of the prior quarter, primarily due to capital expenditures for manufacturing capacity expansions in Alabama, Louisiana, and Ohio.
Mark Widmar, CEO of First Solar, expressed satisfaction with the company's performance, highlighting the year-to-date average selling price (ASP) of over 31 cents per watt, excluding adjusters, and a solid financial outcome. "Our differentiated technology and balanced business model are enabling us to drive growth, navigate industry volatility and deliver enduring shareholder value," Widmar stated.
Looking ahead, First Solar maintains its full-year 2024 profit and loss (P&L) guidance, expecting EPS to be between $13.00 and $14.00, which brackets the analyst consensus of $13.60. The company also anticipates net sales to range from $4.4 to $4.6 billion for the fiscal year, with the midpoint slightly below the consensus estimate of $4.508 billion.
First Solar's guidance remains unchanged from its prior forecast, with the company continuing to expect significant tax credits under Section 45X of the Internal Revenue Code, which are anticipated to contribute to the company's financial performance in the latter half of the year.
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