First Solar Q4 Earnings Preview: Sales, Net Bookings To Watch

As First Solar, Inc. (FSLR) prepares to release its fourth-quarter and full-year 2024 financial results on Tuesday, February 25, investors are eager to see how the solar technology company performed in the final quarter of the year. With a focus on sales and net bookings, here's what to expect from the earnings report.



Sales Trends and Expectations

First Solar's sales have been on an upward trajectory, with the company reporting net sales of $794 million in the first quarter of 2024, a decrease from the previous quarter primarily due to seasonal reduction in volume of modules sold. However, the company's net income per diluted share was $2.20, compared to $3.25 in the fourth quarter of 2023, indicating a strong financial performance.

Analysts expect First Solar to report quarterly earnings of $4.71 per share on revenue of $1.47 billion. If the company meets or exceeds these expectations, it would signal a strong performance for the quarter.



Net Bookings and Backlog

First Solar's net bookings have been a key metric for investors, with the company reporting year-to-date (YTD) net bookings of 2.7 GW with an average selling price (ASP) of 31.3 cents per watt, excluding adjusters, in the first quarter of 2024. This represents a significant increase from the previous quarter and indicates a strong demand for the company's products.

The company's expected sales backlog as of the first quarter of 2024 was 78.3 GW, which is a significant increase from the previous quarter. This indicates that First Solar has a strong pipeline of projects and is well-positioned to continue its growth trajectory.

Investors will be looking for updates on First Solar's net bookings and any changes to the company's sales backlog in the upcoming earnings report.



Guidance and Outlook

First Solar has maintained its full-year 2024 P&L guidance, with net sales expected to be in the range of $4.4 billion to $4.6 billion. The company has also maintained its earnings per diluted share guidance of $13.00 to $14.00.

Investors will be interested in any updates to the company's guidance heading into fiscal 2025. First Solar lowered its fiscal 2024 net sales forecast to a range of $4.1 billion to $4.25 billion, versus the $4.44 billion estimate, last quarter. The company also lowered its full-year earnings forecast from between $13 and $14 per share to between $13 and $13.50 per share, versus the $13.49 estimate.



Political Climate and Energy Secretary Chris Wright

First Solar executives may provide commentary on the political climate and new Energy Secretary Chris Wright, whose background in the fossil fuel industry and his views on climate change and renewable energy could be of concern. Investors will be interested in any insights the company provides on how the political climate may impact its business in the coming quarters.

In conclusion, First Solar's fourth-quarter earnings report will be closely watched by investors, with a focus on sales and net bookings. If the company meets or exceeds expectations, it would signal a strong performance for the quarter and a positive outlook for the future. As the company continues to navigate the political climate and the renewable energy sector, investors will be looking for updates on the company's guidance and any insights into the potential impact of the new Energy Secretary.