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First Solar (FSLR) to Report Q1 Earnings: What's in Store?

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First Solar, Inc. (FSLR - Free Report) is set to report first-quarter 2021 results on Apr 29, after market close.

In the last reported quarter, the company witnessed a negative earnings surprise of 14.96%. However, in the trailing four quarters, First Solar delivered an earnings surprise of 105.22%, on average.

Let's take a closer look at the factors likely to influence the company’s upcoming quarterly results.

Factors to Consider

Robust demand for the company's Series 6 modules is expected to have boosted First Solar’s first-quarter shipments, thereby bolstering its revenues. In fact, the company has been witnessing capacity utilization of more than 100% for the Series 6 modules, particularly across its international factories, in recent times. In February, the company commenced initial production of its second Series 6 low-cost factory in Malaysia and continued production ramp-up through the end of the first quarter.

So, we remain optimistic about the company’s overall top-line performance in the soon-to-be-reported quarter.

In line with this, the Zacks Consensus Estimate for first-quarter revenues is pegged at $695 million, indicating 30.6% growth from the figure reported in the year-ago quarter.

On the cost front, it is imperative to mention that excess capacity utilization at almost all its factories, except the new Malaysia factory which is around the 90% mark, enables First Solar to reduce cost-per-watt related to the Series 6 modules. This is likely to have contributed favorably to its quarterly earnings performance.

Moreover, at the fourth-quarter earnings call, the company revealed its expectations to optimize transportation that could lead to a 15% reduction in freight costs, going ahead.

In line with such notable developments and projections, the Zacks Consensus Estimate for its first-quarter earnings is pegged at $1.00 per share, indicating growth of 17.6% year over year.

Moreover, the company completed the sale of its 150-megawatt AC Sun Streams 2 project to Longroad Energy, during the first quarter. Sale proceeds from this transaction should get duly reflected in the upcoming results of First Solar.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for First Solar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.

Earnings ESP: The company’s Earnings ESP is -15.79%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: First Solar currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

First Solar, Inc. Price and EPS Surprise

Upcoming Solar Releases

SolarEdge Technologies (SEDG - Free Report) is set to release first-quarter numbers on May 3.

Sunrun (RUN - Free Report) is set to release first-quarter 2021 results on May 5.

SunPower Corporation (SPWR - Free Report) is set to release first-quarter 2021 results on May 5.

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