First Solar (FSLR) Q1 Earnings Beat Estimates, Sales Up Y/Y
First Solar Inc. FSLR reported first-quarter 2021 adjusted earnings of $1.96 per share, which handily surpassed the Zacks Consensus Estimate of $1.00. The reported figure also soared 130.6% from the prior-year quarter’s earnings of 85 cents. This upside is primarily attributable to strong sales, coupled with impressive manufacturing execution.
Sales
First Solar’s sales of $803.4 million in the reported quarter exceeded the Zacks Consensus Estimate of $695 million. Moreover, the top line surged 51% from the year-ago quarter’s $532.1 million.
Operational Highlights
In the first quarter, gross profit totaled $184.8 million, which surged significantly from the $90.3 million reported in the year-ago quarter.
Total operating expenses declined 6.1% to $83.3 million due to lower selling, general and administrative expenses as well as reduced research and development expenses.
However, the company reported an operating income of $252.3 million compared with the operating income of $1.65 million reported in the year-ago quarter. This upside is mainly attributable to the significantly higher gross profit during the quarter.
First Solar, Inc. Price, Consensus and EPS Surprise
First Solar, Inc. price-consensus-eps-surprise-chart | First Solar, Inc. Quote
Financial Performance
First Solar had $972.9 million of cash and cash equivalents as of Mar 31, 2021, down from $1,227 million as of Dec 31, 2020.
Long-term debt totaled $254.4 million at the end of the first quarter compared with $237.7 million as of Dec 31, 2020.
2021 Guidance
The company expects to maintain earnings of $4.05-$4.75 per share on updated sales of $2.85-3.025 billion in 2021.
The Zacks Consensus Estimate for 2021 earnings, pegged at $4.39 per share, lies near to the mid-point of the company’s projected range. The Zacks Consensus Estimate for the ongoing-year sales, pegged at $2.92 billion, lies below the mid-point of the guided range.
Moreover, the company expects to incur operating expenses of $285-$300 million.
Meanwhile, First Solar forecasts shipments of 7.8-8.0 gigawatts.
Zacks Rank
First Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
A Recent Solar Release
Enphase Energy, Inc. ENPH reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents.
Upcoming Solar Releases
Sunrun RUN is set to release first-quarter 2021 results on May 5.
SunPower Corporation SPWR is scheduled to report quarterly numbers on May 5.
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