First Solar (FSLR) Reports Narrower Q4 Loss, Revenues Rise Y/Y
First Solar, Inc. FSLR reported a fourth-quarter 2022 loss of 7 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. However, the bottom line declined significantly from the prior-year quarter’s earnings of $1.23 per share.
For 2022, the company reported a loss of 41 cents per share against earnings of $4.38 in 2021.
Sales Update
First Solar’s fourth-quarter net sales were $1,002.4 million, which surpassed the Zacks Consensus Estimate of $997 million by 0.5%. Also, the top line improved by 10.5% from the year-ago quarter’s $628.9 million, primarily due to increased module sales and the sale of the Luz del Norte project in Chile.
For 2022, the company reported net sales of $2.62 billion compared with the year-ago net sales of $2.92 billion. However, net sales beat the Zacks Consensus Estimate of $2.61 billion by 0.4%.
First Solar, Inc. Price, Consensus and EPS Surprise
First Solar, Inc. price-consensus-eps-surprise-chart | First Solar, Inc. Quote
Operational Highlights
In the fourth quarter, the gross profit totaled $60.6 million, which declined 75.8% from $246.5 million in the year-ago quarter.
Total operating expenses increased 45.6% to $106.8 million due to higher research and development costs and production startup costs.
The company reported an operating loss of $45.9 million against the operating income of $173.2 million in the year-ago quarter.
Financial Performance
First Solar had $1,481.3 million of cash and cash equivalents as of Dec 31, 2022, up from $1,450.7 million as of Dec 31, 2021.
The long-term debt totaled $184.3 million as of Dec 31, 2022 compared with $236 million as of Dec 31, 2021.
2023 Guidance
First Solar initiated its 2023 earnings guidance. FSLR expects earnings in the range of $7.00-$8.00 per share on sales of the $3.4-3.6 billion range in 2023.
The Zacks Consensus Estimate for 2023 earnings is pegged at $4.75 per share. The Zacks Consensus Estimate for 2023 sales stands at $3.31 billion, lower than the midpoint of the guided range.
The company now expects a gross profit in the range of $1.2-$1.3 billion. The operating income is now anticipated in the band of $745-$870 million.
Meanwhile, First Solar now expects shipments in the band of 11.8-12.3 gigawatts in 2023.
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.
Recent Solar Releases
Enphase Energy, Inc. ENPH reported fourth-quarter 2022 adjusted earnings of $1.51 per share, which improved by a solid 106.8% from the 73 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $1.27 by 18.9%.
Enphase Energy’s fourth-quarter revenues of $724.7 million beat the Zacks Consensus Estimate of $704 million by 2.9%. The top line soared 75.6% from the year-ago quarter’s $412.7 million, driven by the strong demand for its Enphase Energy Systems.
SolarEdge Technologies, Inc. SEDG reported fourth-quarter adjusted earnings of $2.86 per share, which surpassed the Zacks Consensus Estimate of $1.60 by 78.8%. The bottom line increased 160% from the prior-year quarter’s $1.10 per share.
SolarEdge’s fourth-quarter revenues of $890.7 million surpassed the Zacks Consensus Estimate of $875 million by 1.8%. The top line surged 61.4% from the year-ago quarter’s $551.9 million.
SunPower Corporation SPWR reported fourth-quarter 2022 adjusted earnings of 15 cents per share. The bottom line marked an improvement from the year-ago quarter’s earnings of 2 cents. The Zacks Consensus Estimate for fourth-quarter earnings was pegged at 9 cents per share.
During the quarter under review, SunPower’s adjusted revenues came in at $492.4 million, while its GAAP revenues were $497.3 million. Revenues marginally missed the Zacks Consensus Estimate of $493 million by 0.4%. However, the adjusted top line improved by 47.8% from the year-ago quarter’s $347.5 million.
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