Solar panel manufacturer First Solar (NASDAQ: FSLR) will be reporting earnings this Thursday after market close. Here’s what you need to know.
First Solar beat analysts’ revenue expectations last quarter, reporting revenues of $1.04 billion, up 23.6% year on year. It was a satisfactory quarter for the company, with full-year EBITDA guidance exceeding analysts’ expectations.
Is First Solar a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting First Solar’s revenue to decline 2.7% year on year, a reversal from the 8.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. First Solar has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at First Solar’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bloom Energy delivered year-on-year revenue growth of 166%, beating analysts’ expectations by 27.7%, and Enphase reported a revenue decline of 19.6%, topping estimates by 0.6%.
Read our full analysis of Bloom Energy’s results here and Enphase’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the electrical equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. First Solar is down 12.9% during the same time and is heading into earnings with an average analyst price target of $256.36 (compared to the current share price of $202.75).
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