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Sep 30, 2024
First Solar Q3 2024 Earnings Report
First Solar reported a net sales of $0.9 billion and EPS of $2.91, impacted by a $50 million product warranty reserve charge.
Key Takeaways
First Solar announced third quarter financial results with net sales of $0.9 billion and net income per diluted share of $2.91. The results were impacted by a $50 million product warranty reserve charge. The company's net cash balance decreased to $0.7 billion, driven by capital expenditures and increased working capital.
Net sales were $0.9 billion.
Net income per diluted share was $2.91, impacted by a $50 million product warranty reserve charge.
Net cash balance was $0.7 billion.
YTD net bookings of 4.0 GW; 0.4 GW since second quarter earnings call.
First Solar
First Solar
Forward Guidance
First Solar updated its 2024 guidance, including net sales of $4.10B to $4.25B, gross margin of $1.95B to $2.00B, operating income of $1.48B to $1.54B, earnings per diluted share of $13.00 to $13.50, net cash balance of $0.5B to $0.7B, capital expenditures of $1.55B to $1.65B, and volume sold of 14.2GW to 14.6GW.
Positive Outlook
- Gross Margin assumes $60 million to $75 million of ramp costs and $1.02 billion to $1.05 billion of Section 45X tax credits
- Operating Expenses assumes $70 million to $80 million of production start-up expense
- Operating Income assumes $130 million to $155 million of production start-up expense and ramp costs, and $1.02 billion to $1.05 billion of Section 45X tax credits
- Net Sales guidance is between $4.10B to $4.25B
- Volume Sold guidance is between 14.2GW to 14.6GW
Challenges Ahead
- Net Sales guidance decreased from $4.4B to $4.6B to $4.10B to $4.25B
- Gross Margin guidance decreased from $2.0B to $2.1B to $1.95B to $2.00B
- Operating Income guidance decreased from $1.5B to $1.6B to $1.48B to $1.54B
- Earnings per Diluted Share guidance decreased from $13.00 to $14.00 to $13.00 to $13.50
- Net Cash Balance guidance decreased from $0.6B to $0.9B to $0.5B to $0.7B