US-based First Solar posted first-quarter revenue of $794 million, beating consensus estimates by about 10%.
First Solar has reported its first quarter earnings through March 31, 2024, beating Wall Street consensus expectations for both revenue and earnings per share. The manufacturer of thin-film cadmium telluride solar panels largely maintained its full-year 2024 earnings guidance.
The company posted revenue of $794.11 million in the first quarter, beating Wall Street consensus estimates by about 10%. It also delivered an 8.68% surprise to EPS estimates, coming in at $2.20 for the quarter.
First Solar reiterated its guidance for all of 2024, expecting net revenue of $4.4 billion to $4.6 billion and approximately 15.6 to 16.3 GW of shipments. The company lowered net cash balance expectations by approximately $300 million to a range of $600 million to $900 million, and expected capital expenditures increased by $100 million to a range of $1.8 billion to $2.0 billion for the year.
“We are pleased with our start to 2024, with good operating performance, selective bookings with a year-to-date ASP (average sales price) of over 31 cents per watt excluding adjusters, and solid financial results,” said Mark Widmar, CEO officer of First Solar. “Our differentiated technology and balanced business model enable us to drive growth, weather industry volatility and deliver lasting shareholder value.”
Year-to-date bookings for First Solar totaled 2.7 GW, and the company has an expected sales backlog of more than 78.3 GW. For context, the entire United States has cumulatively installed approximately 180 GW of solar capacity to date.
First Solar has several tailwinds supporting its growth, including a new one anti-dumping and countervailing duty investigation This puts pressure on major competitors who import solar panels. Philip Shen, managing director of Roth Capital Partners, said in an industry note that major suppliers of crystalline silicon solar panels have increased their prices to about $0.05/W for anti-dumping tariffs and another $0.02/W for eliminating tariff exemptions . for bifacial module. These circumstances leave room for First Solar to increase the average sales price, further increasing margins.
The company said in its end-2023 earnings report that it plans to do so doubling production capacity by 2026, indicating strong growth ahead.
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