First Solar Inc.
FSLR
reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%. The reported figure also improved significantly from the prior-year quarter’s earnings of 35 cents.
The year-over-year improvement can be attributed to growth in net sales and favorable module segment gross margin.
Sales Update
First Solar’s sales of $927.6 million in the reported quarter exceeded the Zacks Consensus Estimate of $708 million by 31.1%. Moreover, the top line witnessed a 44.4% surge from the year-ago quarter’s $642.4 million, primarily due to international project sales and an increase in the volume of modules sold to third parties.
First Solar, Inc. Price, Consensus and EPS Surprise
First Solar, Inc. price-consensus-eps-surprise-chart
|
First Solar, Inc. Quote
Operational Highlights
In the third quarter, gross profit totaled $293 million, which increased from $137.5 million reported in the year-ago quarter.
Total operating expenses slipped 0.8% to $85.9 million due to lower selling, general and administrative expenses along with absence of litigation losses.
Consequently, the company reported an operating income of $207.2 million compared with $50.9 million generated in the year-ago quarter. The upside can be primarily attributed to significantly higher net sales and gross profit in the quarter.
Financial Performance
First Solar had $1.28 billion of cash and cash equivalents as of Sep 30, 2020, down from $1.35 billion as of Dec 31, 2019.
Long-term debt totaled $220.5 million at the end of the third quarter compared with $454.2 million as of Dec 31, 2019.
2020 Outlook
First Solar earlier withdrew its 2020 guidance, given the uncertainty regarding the severity and duration of the COVID-19 pandemic. However, along with the third-quarter earnings press release, the company reinstated financial guidance for the fourth quarter of 2020 and provided full-year 2020 guidance based on its financial results through the third quarter 2020.
During the fourth quarter, the company aims to generate earnings in the range of $1.00-$1.50 per share on revenues worth $540-$790 million. The Zacks Consensus Estimate for earnings, pegged at $1.05 per share, lies below the mid-point of the company guided range. The Zacks Consensus Estimate for revenues, pegged at $818 million, lies above the company guided range.
For 2020, the company aims to generate earnings in the range of $3.65-$4.15 on revenues worth $2.6-$2.9 billion. The Zacks Consensus Estimate for earnings, pegged at $2.89 per share, lies below the company guided range. The consensus estimate for revenues, pegged at $2.69 billion, lies below the mid-point of the company guided range.
Moreover, First Solar expects 2020 module shipments to be 5.5-5.7 gigawatts (GW).
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
.
Upcoming Solar Releases
SolarEdge Technologies
SEDG
holds a Zacks Rank of 2 at present and is scheduled to post third-quarter 2020 results on Nov 2.
Canadian Solar
CSIQ
carries a Zacks Rank of 2 at present and will post third-quarter 2020 results soon.
A Recent Solar Release
Enphase Energy
ENPH
came out with earnings of 30 cents per share for the third quarter, beating the Zacks Consensus Estimate of 24 cents per share.
Zacks’ 2020 Election Stock Report:
In addition to the companies you learned about above, we invite you to learn more about profiting from the upcoming presidential election. Trillions of dollars will shift into new market sectors after the votes are tallied, and investors could see significant gains. This report reveals specific stocks that could soar: 6 if Trump wins, 6 if Biden wins.
Check out the 2020 Election Stock Report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
