First Solar Reports Fourth-Quarter Earnings with Mixed Results

First Solar, Inc. (FSLR - Free Report) announced its earnings for the fourth quarter of 2024, revealing earnings of $3.65 per share. This marks a 12.3% increase compared to the same quarter last year, which recorded earnings of $3.25 per share. However, this figure fell short of the Zacks Consensus Estimate of $4.64 per share by 21.3%.

The year-over-year growth in earnings can be linked to a notable increase in sales and gross profit compared to the previous year’s performance.

For the full year of 2024, First Solar reported earnings of $12.02 per share, significantly up from last year's $7.74. Nonetheless, this annual figure also missed the Zacks Consensus Estimate of $13 per share.

Sales Overview

In the fourth quarter, First Solar achieved net sales of $1.51 billion, exceeding the Zacks Consensus Estimate of $1.47 billion by 3%. This revenue represents a substantial increase of 30.7% from $1.16 billion reported in the same quarter last year.

The increase in revenue was primarily due to a rise in module sales volume.

First Solar's total net sales for 2024 reached $4.21 billion, compared to $3.32 billion in 2023, also surpassing the Zacks Consensus Estimate of $4.16 billion.

Operational Performance

For the fourth quarter, the company reported a gross profit of $567.7 million, reflecting a healthy growth of 13.1% from the $502 million achieved in the previous year's quarter.

Operating expenses slightly increased by 0.1% year over year, totaling $110.9 million.

Operating income for the quarter was $456.8 million, up from $397.8 million a year earlier.

Financial Health

As of December 31, 2024, First Solar reported cash and cash equivalents amounting to $1.62 billion, down from $1.95 billion at the same time in 2023.

The company’s long-term debt level stood at $373.4 million, a decrease from $464.1 million a year prior.

Net cash flow from operating activities for 2024 totaled $1.22 billion, an increase compared to $0.60 billion recorded at the end of 2023.

2025 Financial Guidance

First Solar has also shared its financial outlook for 2025.

The company anticipates earnings in the range of $17.00 to $20.00 per share. The Zacks Consensus Estimate for earnings stands at $20.37 per share, which exceeds First Solar’s estimates.

Sales guidance for 2025 is projected between $5.30 billion and $5.80 billion, with the consensus estimate estimated at $5.46 billion, below the midpoint of the company's range.

First Solar expects its gross profit to fall within $2.45 billion to $2.75 billion and operating income to be between $1.95 billion and $2.30 billion.

Module shipments are expected to be in the range of 18 to 20 gigawatts, and the planned capital expenditure for 2025 is estimated at $1.30 to $1.50 billion.

Current Zacks Rating

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

Related Solar Industry Updates

Enphase Energy, Inc. (ENPH - Free Report) has reported fourth-quarter adjusted earnings of 94 cents per share, exceeding the Zacks Consensus Estimate of 75 cents per share by 25.3%. The company's revenues of $382.7 million also surpassed the consensus estimate of $376 million.

SolarEdge Technologies, Inc. (SEDG - Free Report) posted a fourth-quarter adjusted loss of $3.52 per share, which was worse than anticipated by Zacks, as well as a decline compared to a loss of 92 cents per share from the same quarter last year. However, the company's revenues of $196.2 million exceeded estimates by 5.3%.

Upcoming Earnings Release

Sunnova Energy International (NOVA - Free Report) is scheduled to announce its fourth-quarter results on March 3. The Zacks Consensus Estimate for NOVA’s earnings is a loss of 81 cents per share, with a projected sales estimate of $234.5 million, indicating a year-over-year growth of 20.8%. The stock has an average earnings surprise of 2.40% over the last four quarters.

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