First Solar’s Quarterly Earnings Preview: What You Need to Know – TradingView

First Solar, Inc. FSLR, headquartered in Tempe, Arizona, designs and manufactures solar modules. Valued at $24.47 billion by market cap, the company uses a thin film semiconductor technology to manufacture electricity-producing eco-efficient solar modules. The solar module manufacturer is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Tuesday, Jul. 30.

Ahead of the event, analysts expect FSLR to report a profit of $2.69 per share on a diluted basis, up 45.4% from $1.85 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. FSLR’s year-to-date bookings were 2.7 GW, compared to 4.8 GW during the same period last year.

For the full year, analysts expect FSLR to report EPS of $13.63, up 76.1% from $7.74 in fiscal 2023.

FSLR stock has outperformed the S&P 500’s ($SPX) 17.7% gains on a YTD basis, with shares up 37% during this period. Similarly, it outshined the S&P 500 Technology Sector SPDR’s (XLK) 21.7% gains over the same time frame.

On May 29, FSLR shares fell over 2% in pre-market trading after DZ Bank downgraded the stock to Hold from Buy with a $270 price target.

FSLR’s overall performance can be attributed to its robust Q1 results and regulatory steps, such as the Inflation Reduction Act, which provides tax credits on solar panels manufactured in the U.S. and additional tariffs imposed by the U.S. government on cheap imports from China. The company has a sales backlog of 78.3 GW, showcasing strong demand for its advanced thin-film modules and the potential for future revenue growth. 

On May 10, FSLR reported its Q1 results. Its EPS of $2.20 exceeded Wall Street expectations of $1.90. The company posted a revenue of $794.10 million, beating the consensus estimates of $714.90 million. FSLR kept its 2024 guidance unchanged, expecting EPS to be between $13 and $14 and revenue to be between $4.40 billion and $4.60 billion. However, it expects the net cash balance to be between $600 million and $900 million, down from between $0.90 billion and $1.20 billion. FSLR shares closed up marginally on the day the results were released and have been on an uptrend since then.

The consensus opinion on FSLR stock is bullish, with a “Strong Buy” rating overall. Out of 30 analysts covering the stock, 22 advise a “Strong Buy” rating, one suggests a “Moderate Buy” rating, and seven give a “Hold.” The average analyst price target for FSLR is $283.78, indicating a potential upside of 24.2% from the current levels. 

On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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