First Solar Reports Q4 Earnings: Revenues Up Year-Over-Year

First Solar, Inc. (FSLR - Free Report) reported its earnings for the fourth quarter of 2024, revealing a profit of $3.65 per share. This figure shows a healthy increase of 12.3% compared to the same period last year when it reported earnings of $3.25 per share. Nevertheless, this earnings report fell short of the Zacks Consensus Estimate, which had projected earnings of $4.64 per share. This represents a miss of 21.3%.

The improvement in earnings is mainly due to strong growth in sales and gross profit compared to the previous year. In total, First Solar earned $12.02 per share throughout 2024, significantly higher than the $7.74 reported in 2023. However, this full-year earnings figure also missed the Zacks Consensus Estimate that had forecasted earnings of $13 per share.

Sales Performance

First Solar’s net sales for the fourth quarter reached $1.51 billion, beating the Zacks Consensus Estimate of $1.47 billion by 3%. This sales growth marks a remarkable increase of 30.7% compared to the $1.16 billion reported in the year-ago quarter. The significant year-over-year sales growth can be attributed to an increase in the volume of module sales.

For the full year of 2024, the company generated net sales of $4.21 billion, a significant rise from $3.32 billion in 2023. This full-year revenue also exceeded the Zacks Consensus Estimate of $4.16 billion.

Operational Highlights

During the fourth quarter, First Solar achieved a gross profit of $567.7 million, reflecting an increase of 13.1% from $502 million in the prior-year quarter. Meanwhile, total operating expenses saw a minor increase of 0.1% year over year, totaling $110.9 million. The operating income for First Solar was reported at $456.8 million, compared to $397.8 million in the fourth quarter of the previous year.

Financial Overview

As of December 31, 2024, First Solar reported cash and cash equivalents totaling $1.62 billion, down from $1.95 billion recorded a year earlier. The company’s long-term debt stood at $373.4 million, which has decreased from $464.1 million as of December 31, 2023. The net cash flow from operating activities increased significantly, amounting to $1.22 billion for 2024, rising from $0.60 billion the previous year.

Future Guidance for 2025

First Solar has provided its guidance for 2025, projecting earnings in the range of $17.00 to $20.00 per share. The Zacks Consensus Estimate for earnings currently sits at $20.37 per share, surpassing the company’s guided range.

Additionally, First Solar anticipates sales in the range of $5.30 to $5.80 billion, with the consensus estimate pegged at $5.46 billion, slightly below the midpoint of the company’s guidance. The company expects gross profit to land between $2.45 to $2.75 billion, while operating income for 2025 is projected to be between $1.95 to $2.30 billion. Furthermore, module shipments are expected to fall between 18 and 20 gigawatts. The planned capital expenditure for 2025 is estimated to lie between $1.30 to $1.50 billion.

FSLR’s Current Zacks Rank

Currently, First Solar holds a Zacks Rank #3 (Hold), reflecting a stable outlook.

Recent Industry Releases

In related news, Enphase Energy, Inc. (ENPH - Free Report) reported adjusted earnings of 94 cents per share for the fourth quarter of 2024, exceeding the Zacks Consensus Estimate of 75 cents per share by 25.3%. Their revenues reached $382.7 million, also surpassing the consensus estimate of $376 million by 1.8%.

Another company, SolarEdge Technologies, Inc. (SEDG - Free Report), reported a fourth-quarter adjusted loss of $3.52 per share, which was worse than the Zacks Consensus Estimate. Their revenues did amount to $196.2 million, which exceeded the consensus estimate by 5.3%.

Upcoming Earnings Announcement

Sunnova Energy International (NOVA - Free Report) is slated to announce its fourth-quarter results on March 3. The Zacks Consensus Estimate for NOVA’s earnings stands at a loss of 81 cents per share, with projected sales of $234.5 million, indicating a year-over-year growth of 20.8%.

FirstSolar, Earnings, Revenue