We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is First Solar (FSLR) Up 5.8% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for First Solar (FSLR - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is First Solar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
First Solar Q2 Earnings Beat Estimates, Sales Rise Y/Y
First Solar reported second-quarter 2024 earnings of $3.25 per share, up a solid 104.4% from the prior-year quarter’s reported earnings of $1.59 per share. The bottom line also beat the Zacks Consensus Estimate of $2.67 by 21.7%.
The year-over-year improvement in the bottom line can be attributed to solid sales and gross profit growth, along with lower operating expenses, compared to the prior-year quarter’s level.
Sales Update
First Solar’s second-quarter net sales were $1.01 billion, which surpassed the Zacks Consensus Estimate of $0.95 billion by 6.8%. The top line also improved 24.6% from the year-ago quarter’s $0.81 billion.
The year-over-year top-line improvement was driven by an increase in the volume of modules sold as well as an increase in the average selling price per watt of FSLR’s modules.
Operational Highlights
In the second quarter, the company’s gross profit was $498.9 million, which improved a solid 60.7% from $310.4 million in the year-ago quarter.
Total operating expenses decreased 11% year over year to $126.4 million due to significantly lower Litigation loss.
FSLR reported an operating income of $372.5 million compared with an operating income worth $168.5 million in the year-ago quarter.
Financial Performance
First Solar had $1.70 billion in cash and cash equivalents as of Jun 30, 2024, down from $1.95 billion as of Dec 31, 2023.
The long-term debt totaled $418.7 million as of Jun 30, 2024 compared with $464.1 million as of Dec 31, 2023.
The company’s cash flow from operating activities amounted to $460.7 million at the end of the second quarter of 2024 against the cash outflow from operating activities worth $124.3 million in the comparable year-ago quarter’s figure.
2024 Guidance
First Solar reiterated its 2024 guidance. FSLR still expects to generate earnings in the range of $13-$14 per share for 2024. The Zacks Consensus Estimate for the company’s 2024 earnings is pegged at $13.58 per share, higher than the midpoint of the company’s guided range.
FSLR continues to project its sales in the range of $4.40-$4.60 billion in 2024. The Zacks Consensus Estimate for the same is pegged at $4.53 billion, higher than the midpoint of the company’s guided range.
First Solar still expects gross profit in the band of $2.00-$2.10 billion. Its operating income is still anticipated in the $1.50-$1.60 billion range.
Meanwhile, the company still expects module shipments in the band of 15.6-16.3 gigawatts in 2024. First Solar still expects its 2024 capital expenditure guidance in the range of $1.80-$2.00 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -12.63% due to these changes.
VGM Scores
Currently, First Solar has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, First Solar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
First Solar belongs to the Zacks Solar industry. Another stock from the same industry, Enphase Energy (ENPH - Free Report) , has gained 7.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Enphase Energy reported revenues of $303.46 million in the last reported quarter, representing a year-over-year change of -57.3%. EPS of $0.43 for the same period compares with $1.47 a year ago.
Enphase Energy is expected to post earnings of $0.78 per share for the current quarter, representing a year-over-year change of -23.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Enphase Energy. Also, the stock has a VGM Score of F.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is First Solar (FSLR) Up 5.8% Since Last Earnings Report?
A month has gone by since the last earnings report for First Solar (FSLR - Free Report) . Shares have added about 5.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is First Solar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
First Solar Q2 Earnings Beat Estimates, Sales Rise Y/Y
First Solar reported second-quarter 2024 earnings of $3.25 per share, up a solid 104.4% from the prior-year quarter’s reported earnings of $1.59 per share. The bottom line also beat the Zacks Consensus Estimate of $2.67 by 21.7%.
The year-over-year improvement in the bottom line can be attributed to solid sales and gross profit growth, along with lower operating expenses, compared to the prior-year quarter’s level.
Sales Update
First Solar’s second-quarter net sales were $1.01 billion, which surpassed the Zacks Consensus Estimate of $0.95 billion by 6.8%. The top line also improved 24.6% from the year-ago quarter’s $0.81 billion.
The year-over-year top-line improvement was driven by an increase in the volume of modules sold as well as an increase in the average selling price per watt of FSLR’s modules.
Operational Highlights
In the second quarter, the company’s gross profit was $498.9 million, which improved a solid 60.7% from $310.4 million in the year-ago quarter.
Total operating expenses decreased 11% year over year to $126.4 million due to significantly lower Litigation loss.
FSLR reported an operating income of $372.5 million compared with an operating income worth $168.5 million in the year-ago quarter.
Financial Performance
First Solar had $1.70 billion in cash and cash equivalents as of Jun 30, 2024, down from $1.95 billion as of Dec 31, 2023.
The long-term debt totaled $418.7 million as of Jun 30, 2024 compared with $464.1 million as of Dec 31, 2023.
The company’s cash flow from operating activities amounted to $460.7 million at the end of the second quarter of 2024 against the cash outflow from operating activities worth $124.3 million in the comparable year-ago quarter’s figure.
2024 Guidance
First Solar reiterated its 2024 guidance. FSLR still expects to generate earnings in the range of $13-$14 per share for 2024. The Zacks Consensus Estimate for the company’s 2024 earnings is pegged at $13.58 per share, higher than the midpoint of the company’s guided range.
FSLR continues to project its sales in the range of $4.40-$4.60 billion in 2024. The Zacks Consensus Estimate for the same is pegged at $4.53 billion, higher than the midpoint of the company’s guided range.
First Solar still expects gross profit in the band of $2.00-$2.10 billion. Its operating income is still anticipated in the $1.50-$1.60 billion range.
Meanwhile, the company still expects module shipments in the band of 15.6-16.3 gigawatts in 2024. First Solar still expects its 2024 capital expenditure guidance in the range of $1.80-$2.00 billion.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -12.63% due to these changes.
VGM Scores
Currently, First Solar has an average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the top 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, First Solar has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
First Solar belongs to the Zacks Solar industry. Another stock from the same industry, Enphase Energy (ENPH - Free Report) , has gained 7.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Enphase Energy reported revenues of $303.46 million in the last reported quarter, representing a year-over-year change of -57.3%. EPS of $0.43 for the same period compares with $1.47 a year ago.
Enphase Energy is expected to post earnings of $0.78 per share for the current quarter, representing a year-over-year change of -23.5%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Enphase Energy. Also, the stock has a VGM Score of F.