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First Solar (FSLR) Reports Q1 Loss, Sales Lag Estimates

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First Solar, Inc. (FSLR - Free Report) reported first-quarter 2022 loss of 41 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line deteriorated significantly from the prior-year quarter’s earnings of $1.96 per share.

Sales Update

First Solar’s first-quarter sales were $367 million, which lagged the Zacks Consensus Estimate of $567.4 million by 35.3%. The top line also declined 54.3% from the year-ago quarter’s $803.4 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, gross profit totalled $11.5 million, which decreased significantly from $184.8 million in the year-ago quarter.

Total operating expenses slumped 14.6% to $71.2 million due to lower SG&A costs and production start-up costs.

The company reported an operating loss of $57.8 million against an operating income of $252.3 million in the year-ago quarter.

Financial Performance

First Solar had $1,326.4 million of cash and cash equivalents as of Mar 31, 2022, down from $1,450.7 million as of Dec 31, 2021.

Long-term debt totaled $247.4 million as of as of Mar 31, 2022 compared with $236 million as of Dec 31, 2021.

2022 Guidance

First Solar reaffirmed its 2022 earnings guidance. The company still expects earnings in the range of $0.00-$0.60 per share on sales of the $2.4-2.6 billion range in 2022.

The Zacks Consensus Estimate for 2022 earnings is pegged at 38 cents per share, higher than the mid-point of the company’s projected range. The Zacks Consensus Estimate for 2022 sales stands at $2.53 billion, higher than the midpoint of the guided range.

The company continues to expect gross profit in the range of $155 million-$215 million, while operating income is anticipated in the band of $55-$150 million.

Meanwhile, FSLR forecasts shipments in the band of 8.9-9.4 gigawatts in 2022.

Zacks Rank

First Solar currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Release

Enphase Energy (ENPH - Free Report) reported first-quarter 2022 adjusted earnings of 79 cents per share, which improved by 41.1% from 56 cents per share reported in the prior-year quarter. The Zacks consensus estimate for first quarter earnings is pegged at 68 cents.

Enphase Energy’s first-quarter revenues of $441.3 million beat the Zacks Consensus Estimate of $434 million by 1.7%. The top line soared 46.2% from the year-ago quarter’s $301.8 million.

Upcoming Solar Releases

SolarEdge Technologies (SEDG - Free Report) is slated to release first-quarter 2022 results on May 2. SolarEdge boasts a long-term earnings growth rate of 24.7%.

The Zacks Consensus Estimate for SEDG’s first-quarter earnings, pegged at $1.32 per share, implies a year-over-year improvement of 34.7%. SolarEdge has a four-quarter earnings surprise of 5.69%.

SunPower Corporation is scheduled to release first-quarter 2022 results on May 5. SunPower has a four-quarter earnings surprise of 8.33%.

The Zacks Consensus Estimate for SPWR’s first-quarter earnings, pegged at 3 cents per share, implies a year-over-year decline of 40%.


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