Chuck Smith monitors the manufacturing process of Series 6 solar panels during a tour of First Solar’s factory in Walbridge, Ohio, on October 6, 2021.
Dane Reese | Reuters
first solar corp. Second-quarter results on Tuesday beat revenue and earnings expectations, but the solar technology company kept its forecast for the year unchanged ahead of the U.S. presidential election.
First Solar shares rose more than 1% in after-hours trading.
Here’s how First Solar’s second-quarter report compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: $3.25, $2.69 expected
- Revenue: $1.01 billion, $941.5 million expected
First Solar’s sales were $1.01 billion, a 24% increase from revenue of $810 million in the same period last year. Net income more than doubled to $349.4 million, or $3.25 a share, from $171 million, or $1.59 a share, a year ago.
Chief Executive Mark Widmar warned that solar companies faced increasing constraints on access to capital in the second quarter due to uncertainty surrounding the U.S. presidential election.
Vidmar said the potential for a Republican sweep of the White House and Congress has raised concerns that tax credits under the Inflation Reduction Act will be affected.
The CEO said investors are waiting to make a decision until they have a clear picture of post-election policies. He said this uncertainty also prompted developers to evaluate the risks and rewards of their projects. He added that some oil, gas, power and utility companies are also considering moving away from renewable energy and prioritizing fossil fuels.
First Solar reiterated its 2024 forecast, predicting earnings of $13.00 to $14.00 per share and revenue of $4.4 billion to $4.6 billion. The company expects sales in the range of 1,560 to 16.3 GW and net cash of $600 million to $900 million.
Chief Financial Officer Alexander Bradley said on the earnings call that revenue, sales and net cash will likely be at the bottom of the guidance range as a European power and utility company canceled 0.4 gigawatts of contracts. The customer is obligated to pay the termination fee.
First Solar’s net bookings have increased by 3.6 GW through 2024. Building solar.
Bradley said First Solar will be “very selective in how we process new orders this year” given the uncertainty surrounding the election.
Regardless of the election outcome, demand for utility-scale renewable energy is expected to continue growing due to factors such as the construction of data centers, the reshoring of manufacturing and cryptocurrency mining, Vidmar said.
“Crucially, this demand is often independent of policy,” Vidma said. “Solar continues to prove that it is the lowest-cost energy source in many parts of the United States.”
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