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First Solar is Set to Post Q4 Earnings: What's in Store?

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First Solar, Inc. (FSLR - Free Report) is scheduled to report fourth-quarter 2024 results on Feb. 25, after market close.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

First Solar delivered a negative earnings surprise of 6.13% in the last reported quarter. However, the company has a four-quarter average earnings surprise of 8.32%.

Let’s discuss the factors that are likely to reflect in the upcoming quarterly results.

Factors to Note Ahead of FSLR’s Results

First Solar has been expanding its production capacity to meet growing solar demand. The company opened a new solar module factory in Alabama in the third quarter, which is expected to have boosted its module shipments and, thereby revenues in the fourth quarter.

However, Chinese manufacturers have been selling low-cost solar panels in India, which has created pricing pressure in the Indian market. This is likely to have reduced First Solar’s sales in India to some extent and, thereby impacted its top line.

The Zacks Consensus Estimate for FSLR’s fourth-quarter sales is pinned at $1.47 billion, which indicates year-over-year growth of 26.9%.

Solid revenue growth expectations, along with the higher sales mix of modules qualifying for the advanced manufacturing production credit under Section 45X of the IRC, are likely to have bolstered the company’s quarterly earnings growth.

However, product warranty charges related to the manufacturing issues in its Series 7 modules are likely to have impacted FSLR’s overall bottom-line performance to some extent.

The Zacks Consensus Estimate for earnings per share is pinned at $4.69, which indicates year-over-year growth of 44.3%.

First Solar, Inc. Price and EPS Surprise

First Solar, Inc. Price and EPS Surprise

First Solar, Inc. price-eps-surprise | First Solar, Inc. Quote

What the Zacks Model Unveils for FSLR

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, which is not the case here.

Earnings ESP: First Solar’s Earnings ESP is -1.72%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

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

Stocks to Consider

Here are three companies from the same sector that have the right combination of elements to post an earnings beat this reporting cycle.

Sunnova Energy International (NOVA - Free Report) is set to report fourth-quarter 2024 earnings on March 3, before market open. It has an Earnings ESP of +3.06% and a Zacks Rank of 2.

The Zacks Consensus Estimate for NOVA’s fourth-quarter loss is pegged at 81 cents per share. The consensus estimate for its sales is pegged at $234.5 million, indicating year-over-year growth of 20.8%.

Clearway Energy (CWEN - Free Report) is set to report fourth-quarter 2024 earnings on Feb. 24, after market close. It has an Earnings ESP of +164.00% and a Zacks Rank of 2.

The Zacks Consensus Estimate for CWEN’s earnings is pegged at 13 cents per share. The consensus estimate for its sales is pegged at $308 million, indicating year-over-year growth of 23.7%.

Berry (BRY - Free Report) is set to report fourth-quarter 2024 earnings on March 12, after market close. It has an Earnings ESP of +8.33% and a Zacks Rank of 2.

The Zacks Consensus Estimate for BRY’s earnings is pegged at 12 cents per share. The consensus estimate for its sales is pegged at $155 million.

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