First Solar (FSLR) Q2 Earnings Beat Estimates, Revenues Down Y/Y


First Solar Inc

.

FSLR

reported second-quarter 2021 adjusted earnings of 77 cents per share, which surpassed the Zacks Consensus Estimate of 60 cents by 28.3%. The reported figure also soared 120% from the prior-year quarter’s earnings of 35 cents.

Sales Update

First Solar’s sales of $629.2 million in the reported quarter missed the Zacks Consensus Estimate of $632 million by 0.5%. The top line also witnessed a 2.1% decline from the year-ago quarter’s $642.4 million.

Operational Highlights

In the second quarter, gross profit totaled $174.1 million, which increased significantly from $137.5 million reported in the year-ago quarter.

Total operating expenses declined 28.4% to $62 million due to lower selling, general and administrative costs and reduced production start-up costs.

The company reported an operating income of $110.4 million compared to the operating income of $50.9 million reported in the year-ago quarter. The upside can primarily be attributable to significantly higher gross profit in the quarter.

First Solar, Inc. Price, Consensus and EPS Surprise

Financial Performance

First Solar had $1,346.9 million of cash and cash equivalents as of Jun 30, 2021, up from $1,227 million as of Dec 31, 2020.

Long-term debt totaled $276.1 million at the end of the second quarter compared with $237.7 million as of Dec 31, 2020.

2021 Guidance

The company expects earnings to be $4.00-$4.60 per share on updated sales of $2.875-3.10 billion in 2021.

The Zacks Consensus Estimate for 2021 earnings, pegged at $4.32 per share, lies above the midpoint of the company’s projected range. The Zacks Consensus Estimate for 2021 sales, pegged at $2.94 billion, lies below the midpoint of the guided range.

Meanwhile, First Solar forecasts shipments of 7.6-8.0 gigawatts.

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


.

A Recent Solar Release


Enphase Energy


ENPH

reported second-quarter 2021 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 42 cents by 26.2%.

Upcoming Solar Releases


SunPower Corporation


SPWR

is set to release second-quarter numbers on Aug 3.


Sunrun


RUN

is set to release second-quarter 2021 results on Aug 5.


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