First Solar's Q4 Earnings Miss Estimates, Revenues Increase Y/Y

First Solar, Inc. (FSLR - Free Report) announced its earnings for the fourth quarter of 2024, reporting earnings of $3.65 per share. This shows a growth of 12.3% compared to the same quarter last year, where earnings were $3.25. However, this result fell short of the Zacks Consensus Estimate, which was $4.64 per share, missing expectations by 21.3%.

The year-over-year increase in earnings can be linked to strong sales growth and an increase in gross profit compared to the previous year.

For the entire year of 2024, First Solar reported earnings of $12.02 per share, significantly higher than the $7.74 earnings in 2023. Nevertheless, this figure also missed the Zacks Consensus Estimate of $13 per share.

Sales Performance Overview

In the fourth quarter, First Solar's net sales reached $1.51 billion, surpassing the Zacks Consensus Estimate of $1.47 billion by 3%. This sales figure represents an impressive 30.7% increase from the $1.16 billion reported in the same quarter last year.

The year-over-year growth in sales was primarily driven by an increase in module sales volume.

For the entire year of 2024, net sales amounted to $4.21 billion, an increase from $3.32 billion in 2023. This total also exceeded the Zacks Consensus Estimate of $4.16 billion.

Operational Highlights

During the fourth quarter, First Solar recorded a gross profit of $567.7 million, reflecting a strong 13.1% increase from $502 million in the previous year’s quarter.

Total operating expenses saw a slight increase of 0.1% from the previous year, totaling $110.9 million.

First Solar achieved an operating income of $456.8 million, up from $397.8 million reported in the fourth quarter of the prior year.

Financial Position

As of December 31, 2024, First Solar's cash and cash equivalents stood at $1.62 billion, a decrease from $1.95 billion at the end of 2023.

Long-term debt was reported at $373.4 million, down from $464.1 million as of December 31, 2023.

The net cash flow from operating activities for the year totaled $1.22 billion, compared to $0.60 billion recorded at the end of 2023.

Outlook for 2025

First Solar has provided guidance for the year 2025. The company anticipates earnings between $17.00 and $20.00 per share, with the Zacks Consensus Estimate for earnings being slightly higher at $20.37 per share.

Sales guidance for 2025 is expected to be in the range of $5.30 to $5.80 billion, and the consensus estimate stands at $5.46 billion, which is just below the midpoint of the company's guidance.

Additionally, First Solar forecasts gross profit between $2.45 billion and $2.75 billion, with operating income expected to be in the range of $1.95 billion to $2.30 billion.

The company also anticipates module shipments to be between 18 and 20 gigawatts. For capital expenditures, the expectation is set between $1.30 billion and $1.50 billion for 2025.

Analyst Ratings

First Solar currently holds a Zacks Rank of #3 (Hold).

Recent Industry Updates

Enphase Energy, Inc. (ENPH - Free Report) recently reported fourth-quarter 2024 adjusted earnings of 94 cents per share, surpassing the Zacks Consensus Estimate by 25.3%. The company's revenues were $382.7 million, also beating the consensus estimate of $376 million.

In contrast, SolarEdge Technologies, Inc. (SEDG - Free Report) announced a fourth-quarter adjusted loss of $3.52 per share, which was worse than the Zacks Consensus Estimate. However, the company's revenues of $196.2 million exceeded the consensus estimate by 5.3%.

Upcoming Reports

Sunnova Energy International (NOVA - Free Report) is set to release its fourth-quarter 2024 results on March 3. The Zacks Consensus Estimate for NOVA's earnings stands at a loss of 81 cents per share, with a sales estimate of $234.5 million, indicating a 20.8% year-over-year growth.

earnings, finance, companies