First Solar’s Q1 Earnings Report: Key Things to Watch

First Solar, a leading solar panel manufacturer listed on the NASDAQ as FSLR, is set to announce its quarterly earnings tomorrow, and investors are keen to learn more about what to expect.

In the previous quarter, First Solar outperformed analysts’ revenue forecasts by 2%, achieving revenues of $1.51 billion, marking a substantial 30.7% increase compared to the previous year. Despite this revenue beat, the company’s full-year earnings per share (EPS) guidance failed to meet expectations set by analysts.

In the upcoming quarter, analysts are estimating that First Solar’s revenue will grow by 6.8% year on year to reach $847.9 million. While this anticipated growth is noteworthy, it represents a slowdown from the impressive 44.8% increase in revenue reported in the corresponding quarter the previous year. Adjusted earnings are predicted to be $2.65 per share.

Over the past month, analysts closely tracking the company have largely upheld their estimates, indicating a level of stability and confidence in the company’s performance ahead of the earnings announcement. Historically, First Solar has fallen short of Wall Street’s revenue projections five times in the past two years.

Taking cues from other companies in the electrical equipment industry, some have already released their Q1 results, setting a benchmark for comparison. Notably, Enphase experienced a 35.2% year-on-year revenue growth, slightly below analysts’ expectations by 1.6%, while Bel Fuse reported revenue growth of 18.9%, surpassing estimates by 1.6%. Post-announcement, Enphase noted a 15.8% decline in its stock price, whereas Bel Fuse enjoyed a 3.4% increase.

As First Solar enters the earnings season, investors in the electrical equipment segment have maintained a relatively stable stance, with average share prices declining by 1.4% over the last month. First Solar, on the other hand, has seen its share price increase by 12.4% during the same period. Analysts have set an average price target of $228.59 for First Solar, notably higher than its current share price of $142.16.

Understanding the significance of thematic investing, a strategy capitalizing on long-term trends like growth in categories such as artificial intelligence (AI), StockStory highlights opportunities in identifying promising growth stocks. As we await First Solar’s Q1 earnings report, there is an increased interest in advantageous investment opportunities, waiting to be explored.