Mar 31, 2022

First Solar Q1 2022 Earnings Report

First Solar's financial performance declined due to decreased module volume and average selling price, resulting in a net loss.

Key Takeaways

First Solar reported a decrease in net sales to $367 million and a net loss per share of $0.41 for Q1 2022. The company's cash, restricted cash, and marketable securities decreased to $1.6 billion. However, bookings remained strong, with 11.9 GWDC booked since the last earnings call, bringing the year-to-date total to 16.7 GWDC.

Net sales were $367 million, a decrease from the prior quarter.

The company experienced a net loss per share of $0.41.

Cash, restricted cash, and marketable securities totaled $1.6 billion.

Year-to-date net bookings reached 16.7 GWDC.

Total Revenue
$367M
Previous year: $803M
-54.3%
EPS
-$0.41
Previous year: $0.81
-150.6%
Gross Profit
$11.5M
Previous year: $185M
-93.8%
Cash and Equivalents
$1.33B
Previous year: $973M
+36.3%
Free Cash Flow
-$294M
Previous year: -$370M
-20.6%
Total Assets
$7.4B
Previous year: $7.11B
+4.1%

First Solar

First Solar

Forward Guidance

First Solar reiterated its full year 2022 guidance, including net sales of $2.4B to $2.6B and earnings per diluted share of $0.00 to $0.60.

Positive Outlook

  • Net Sales: $2.4B to $2.6B
  • Gross Margin: $155M to $215M
  • Operating Expenses: $365M to $380M
  • Operating Income: $55M to $150M
  • Earnings per Diluted Share: $0.00 to $0.60

Challenges Ahead

  • Includes $10 million to $15 million of underutilization losses
  • Includes $85 million to $90 million of production start-up expense
  • Includes $95 million to $105 million of production start-up expense and underutilization losses
  • Includes $270 million to $290 million pre-tax gain related to the potential sale of the Japan project development and O&M platform
  • Defined as cash, cash equivalents, marketable securities, and restricted cash less expected debt at the end of 2022