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First Solar Inc. Shares Surge Over 5% After Beating Q4 Earnings Expectations

First Solar's Q4 earnings soar to $349M, beating expectations; forecasts robust 2024 with sales up to $4.6B.

By Bill Bullington

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2/27, 16:54 EST
First Solar, Inc.

Key Takeaway

  • First Solar Inc. shares rose over 5% after reporting Q4 earnings of $349 million, surpassing analysts' expectations.
  • The company forecasts 2024 net sales between $4.4 billion and $4.6 billion with EPS of $13 to $14, exceeding FactSet predictions.
  • Despite industry challenges, First Solar's strong performance and optimistic guidance highlight its market resilience and growth potential.

Strong Financial Performance

First Solar Inc. saw a positive response from investors as its shares rose over 5% in after-hours trading following the release of its fourth-quarter earnings. The company reported earnings of $349 million, or $3.25 per share, compared to $268 million, or $2.50 per share, in the same period last year. Revenue also saw a significant increase, rising by $400 million to reach $1.2 billion for the quarter. These results exceeded analysts' expectations, with FactSet anticipating earnings of $3.19 per share on sales of $1.3 billion.

Optimistic Guidance for 2024

Looking ahead, First Solar provided optimistic guidance for the year 2024, forecasting net sales between $4.4 billion and $4.6 billion, with an expected EPS range of $13 to $14 per share. This guidance surpasses FactSet expectations of an EPS around $13.26 per share on sales of $4.56 billion. The company's strong financial outlook for 2024 reflects confidence in continued growth and operational efficiency.

Industry Challenges and Resilience

Despite challenges faced by the solar industry, including lower demand, high interest rates, and regulatory changes, First Solar's robust performance stands out. The company's ability to secure contracts, increase production of its Series 7 modules, and maintain strong gross margins amidst industry headwinds demonstrates its resilience and strategic positioning in the market.

Analyst and Market Views

Financial analysts and market observers are closely monitoring First Solar's performance, with expectations of a positive earnings report. While the company's Earnings ESP is -0.82%, indicating a potential miss, its solid track record of delivering strong financial results and exceeding expectations in previous quarters instills confidence in its ability to navigate industry challenges and deliver value to investors.