Chuck Smith monitors the manufacturing process of the series 6 solar panels during a tour of a First Solar plant in Walbridge, Ohio, on Oct. 6, 2021.
Dane Rhys | Reuters
First Solar reported second-quarter results Tuesday that beat revenue and earnings expectations, but the solar technology company left its forecast for the year unchanged heading into the U.S. presidential election.
First Solar stock rose about 1% in extended trading.
Here is what First Solar reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
- Earnings per share: $3.25 vs. $2.69 expected
- Revenue: $1.01 billion vs. $941.5 million expected
First Solar booked $1.01 billion in sales, a 24% increase over revenues of $810 million during the same period last year. Net income more than doubled to $349.4 million, or $3.25 per share, from $171 million, or $1.59 per share, a year ago.
CEO Mark Widmar cautioned that solar companies faced growing constraints on access to capital in the second quarter due to uncertainty around the U.S. presidential election.
The potential of Republicans sweeping the White House and Congress has raised concerns that tax credits under the Inflation Reduction Act will be impacted, Widmar said.
Investors are waiting to make decisions until they have a clear view of what policy will look like after the election, the CEO said.
First Solar reiterated its 2024 forecast, which calls for earnings of $13.00 to $14.00 per share on revenue of $4.4 billion to $4.6 billion in revenue. The company expects volume sold in the range of 15.6 to 16.3 gigawatts, and net cash of $600 million to $900 million.
Revenue, volume sold and net cash will likely come in at the bottom of the guidance range due to the cancellation of a 0.4 gigawatt contract by a European power and utility company, Chief Financial Officer Alexander Bradley said on an earnings call.
First Solar has added 3.6 gigawatts in net bookings so far in 2024. The company has an expected backlog of 75.9 gigawatts, with orders stretching through 2030, as utilities build out solar on expectations of a significant surge in power demand over the coming years.
First Solar’s stock has dropped 6.4% over the past month, as polls began to favor former President Donald Trump in the November election.
