Jun 30, 2021

First Solar Q2 2021 Earnings Report

First Solar reported mixed results, with decreased net sales offset by increased cash reserves and strategic capacity expansions.

Key Takeaways

First Solar announced mixed Q2 2021 results with net sales of $629 million and net income per share of $0.77. The company is expanding manufacturing capacity in Ohio and India, aiming for 16 GWDC by 2024. They also validated a world record CdTe module efficiency and updated their 2021 guidance.

Net sales for the second quarter were $629 million.

Net income per diluted share for the second quarter was $0.77.

Cash, cash equivalents, restricted cash, and marketable securities totaled $2.1 billion.

Year-to-date net bookings reached 9.0 GWDC, with 4.1 GWDC since the prior earnings call.

Total Revenue
$629M
Previous year: $642M
-2.1%
EPS
$0.77
Previous year: $0.39
+97.4%
Gross Profit
$174M
Previous year: $137M
+26.7%
Cash and Equivalents
$1.35B
Previous year: $1.05B
+27.9%
Free Cash Flow
$86.6M
Previous year: $39.4M
+120.1%
Total Assets
$7.25B
Previous year: $7.07B
+2.5%

First Solar

First Solar

Forward Guidance

First Solar updated its 2021 guidance, projecting net sales between $2.875B and $3.1B, and earnings per share between $4.00 and $4.60, while reducing the net cash balance forecast to $1.35B to $1.45B and increasing capital expenditure expectations to $825M to $875M.

Positive Outlook

  • Net Sales: $2.875B to $3.1B
  • Gross Margin: $695M to $760M
  • Operating Expenses: Unchanged
  • Operating Income: $545M to $625M
  • Shipments: 7.6GW to 8.0GW

Challenges Ahead

  • Earnings per Share: $4.00 to $4.60
  • Net Cash Balance: $1.35B to $1.45B
  • Capital Expenditures: $825M to $875M
  • Freight Costs: Earnings guidance lowered primarily due to freight costs
  • Underutilization and Reduced Throughput: $40 million impact