TEMPE, Ariz. - First Solar, Inc. (NASDAQ:FSLR) reported a robust fourth quarter, surpassing analyst expectations for earnings per share (EPS) but falling short on revenue. The company's EPS for the quarter was $3.25, outpacing the consensus estimate of $3.15. However, quarterly revenue was $1.16 billion, not meeting the anticipated $1.31 billion.
The solar technology company also provided an optimistic outlook for the fiscal year 2024, projecting EPS in the range of $13 to $14, which brackets the analyst consensus of $13.33. Revenue guidance for 2024 is forecasted between $4.4 billion and $4.6 billion, with the midpoint slightly below the consensus estimate of $4.56 billion.
Following the earnings release, First Solar's stock rose 2.77% in after-market trading, signaling a positive investor reaction to the company's earnings beat and future guidance. The driver behind the stock's upward movement was the earnings beat coupled with the upbeat guidance for the coming year.
The company's CEO, Mark Widmar, commented on the significant progress made in 2023, stating, "Few years have been as consequential to our long-term growth strategy as 2023." He highlighted the scaling of manufacturing capacity, record module production and shipments, and the expansion of the contracted backlog to historic levels as key achievements.
First Solar's financial results for the full year 2023 showed a substantial increase in net sales to $3.3 billion compared to $2.6 billion the previous year. This growth was attributed to higher module volumes sold and an increase in average selling prices (ASPs). The company ended the year with a net cash balance of $1.6 billion.
Investors are encouraged by the company's strategic advancements, including capacity expansions in multiple states and India, which are expected to bolster its position in the solar industry. The guidance for 2024 reflects the company's confidence in its growth trajectory and its ability to capitalize on the opportunities presented by the Inflation Reduction Act of 2022.
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