NASDAQ$FSLR

First Solar, Inc. · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

First Solar's Q3 2023 financial performance was marked by net sales of $801 million and net income per diluted share of $2.50.

First Solar reported net sales of $801 million and net income per diluted share of $2.50 for the third quarter of 2023. The company maintains its full-year 2023 revenue guidance and raised the mid-point of EPS guidance from $7.50 to $7.60. The company's net cash balance was $1.3 billion.

  • Net sales for the third quarter were $801 million.
  • Net income per diluted share was $2.50.
  • Net cash balance was $1.3 billion.
  • YTD net bookings of 27.8 GW; 6.8 GW since second quarter earnings call with an average selling price of $0.30 per watt, excluding India.

Headline financials

Total Revenue

$801M

Previous: $629M+27.4%
EPS (adj)

$2.50

Previous: -$0.46+643.5%
Capital Expenditures

-$1.04B

Previous: -$577M-80.3%
Free Cash Flow

-$771M

Previous: -$626M-23.3%
Net Income

$268M

Previous: -$49.2M+645.9%
Operating Income

$273M

Previous: -$68.4M+499.3%
Gross Profit

$376M

Previous: $21M+1692.8%
Cash & Equivalents

$1.49B

Previous: $1.15B+29.7%
Total Assets

$9.58B

Previous: $7.49B+27.9%
R&D Expense

$41.2M

No prior period
Stock-Based Comp

$8.2M

Previous: $11.9M-30.8%

Revenue & EPS history

First Solar · Revenue · Quarterly

$801M

Q3 2023+27.4%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Forward guidance

First Solar updated its 2023 guidance, maintaining net sales and gross margin expectations, while adjusting operating expenses and operating income. Earnings per diluted share are expected to be between $7.20 and $8.00.

Tailwinds

  • Net Sales: $3.4B to $3.6B (Unchanged)
  • Gross Margin: $1.2B to $1.3B (Unchanged) - Includes $110 million to $120 million of ramp and underutilization costs and $670 million to $700 million of Section 45X tax benefits
  • Operating Income: $770M to $870M
  • Earnings per Diluted Share: $7.20 to $8.00
  • Net Cash Balance: $1.5B to $1.8B (Unchanged)

Headwinds

  • Operating Expenses: $440M to $470M - Includes $75 million to $85 million of production start-up expense and $36 million of litigation losses
  • Includes $185 million to $205 million of production start-up expense and ramp and underutilization costs, $36 million of litigation losses, and $670 million to $700 million of Section 45X tax benefits
  • Capital Expenditures: $1.7B to $1.9B (Unchanged)
  • Volume Sold: 11.8GW to 12.3GW (Unchanged)
  • The guidance figures presented above are forward-looking statements that are subject to a variety of assumptions and estimates, including with respect to certain factors related to the Inflation Reduction Act of 2022 (the “IRA”)

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2023

Historical avgQ3 2023

+0.1%

Avg return

Earnings day

+1.4%

Avg return

5 days after

+5.7%

Avg return

30 days after

46%

33 / 72 earnings

Positive

+29.2%

Q2 2022

Best reaction

-17.4%

Q4 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+5.9%+15.1%+60.7%
Q4 2025-3.5%-17.8%-21.8%
Q3 2025+10.0%+18.8%+16.8%
Q1 2025-8.3%-7.3%+15.2%
Q4 2024+6.4%-13.4%-13.7%
Q3 2024-3.7%-0.0%-6.1%
Q2 2024-2.0%-3.3%+1.2%
Q1 2024+2.4%+9.9%+54.1%
Q4 2023+3.2%+9.3%+16.8%
Q3 2023+4.8%+11.5%+15.7%
Q2 2023+5.6%+2.7%-10.1%
Q1 2023-8.5%-11.6%+1.1%
Q4 2022+17.8%+26.5%+28.4%
Q3 2022+1.0%+13.1%+30.5%
Q2 2022+29.2%+29.9%+58.6%
Q1 2022+1.2%+4.1%-0.2%
Q4 2021-7.7%-4.6%+11.2%
Q3 2021-0.4%-2.3%-15.9%
Q2 2021+3.1%+10.6%+13.1%
Q1 2021-13.7%-16.8%-14.2%
Q4 2020-8.0%-5.5%-2.7%
Q3 2020+11.4%+3.9%+10.4%
Q2 2020+11.0%+6.8%+9.6%
Q1 2020+2.4%-6.4%+19.2%
Q4 2019-11.8%-15.3%-41.3%
Q3 2019-4.7%-3.6%-1.6%
Q2 2019+3.3%-2.6%-3.8%
Q1 2019+1.5%+1.3%-4.6%
Q4 2018+3.9%+0.4%+1.4%
Q3 2018-7.2%-6.2%+2.1%
Q2 2018-4.4%-3.1%-3.6%
Q1 2018+5.9%-8.2%-7.2%
Q4 2017-7.4%-4.8%+5.9%
Q3 2017+21.7%+15.7%+27.9%
Q2 2017+7.5%+9.3%+4.4%
Q1 2017+14.8%+16.9%+29.7%
Q4 2016-3.6%+8.8%-18.0%
Q3 2016-15.9%-17.8%-26.6%
Q2 2016-8.5%-8.3%-20.1%
Q1 2016-6.9%
Q4 2015+8.1%
Q3 2015+12.2%
Q2 2015+18.8%
Q1 2015-7.4%
Q4 2014+17.9%
Q3 2014-10.6%
Q2 2014+3.9%
Q1 2014-7.1%
Q4 2013-8.7%
Q3 2013+15.1%
Q2 2013-15.4%
Q1 2013-5.6%
Q4 2012-17.4%
Q3 2012-7.2%
Q2 2012+15.4%
Q1 2012-7.0%
Q4 2011-16.4%
Q3 2011-0.9%
Q2 2011-7.5%
Q1 2011+3.2%
Q4 2010-5.4%
Q3 2010-0.0%
Q2 2010+1.0%
Q1 2009+12.4%
Q1 2010+2.5%
Q4 2009-8.8%
Q4 2007-8.8%
Q3 2008-3.8%
Q3 2009-3.8%
Q2 2008-4.2%
Q2 2009-4.2%
Q4 2008-4.2%

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