What's in the Cards for First Solar (FSLR) in Q2 Earnings?
First Solar, Inc. FSLR is slated to report its second-quarter 2023 results on Jul 27 after the closing bell.
In the last reported quarter, the company delivered a negative earnings surprise of 59.60%. First Solar has a trailing four-quarter negative earnings surprise of 6.29%, on average.
Factors to Note
Strong bookings in the recent past and healthy sales volumes of Series 6 and Series 7 modules are likely to have added impetus to the top line of the company in the second quarter of 2023. Moreover, expanding manufacturing capacity may have contributed to the overall revenue performance in the second quarter.
Further, First Solar had approximately 50 megawatts of U.S. manufactured products remaining in inventory, substantially all of which are expected to have been sold in the second quarter. This must have also boosted its second-quarter revenues.
The Zacks Consensus Estimate for FSLR’s second-quarter revenues is pegged at $737.6 million. This suggests growth of 18.8% from the year-ago reported figure.
The positive outcome of the top-line performance is likely to have aided the bottom line of the company in the second quarter. The expected reduction in logistics costs and the tax benefits of the Inflation Reduction Act may have contributed to its margins and overall second-quarter earnings.
The Zacks Consensus Estimate for First Solar’s second-quarter earnings is pegged at 95 cents per share. This implies growth of 82.7% from the prior-year reported figure.
First Solar, Inc. Price and EPS Surprise
First Solar, Inc. price-eps-surprise | First Solar, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for FSLR this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP: The company’s Earnings ESP is -0.37%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: First Solar currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three solar companies you may want to consider as these have the right combination of elements to post an earnings beat this season:
SolarEdge Technologies SEDG currently has an Earnings ESP of +4.91% and a Zacks Rank #3. The Zacks Consensus Estimate for SolarEdge’s second-quarter sales implies an improvement of 35.9% from the prior-year reported figure.
SEDG delivered an earnings surprise of 46.46% in the last reported quarter. Its second-quarter earnings estimates, pegged at $2.54 per share, indicate an improvement of 167.4% from the year-ago quarter’s tally.
Sunrun RUN currently has an Earnings ESP of +61.42% and a Zacks Rank #3. The Zacks Consensus Estimate for its second-quarter sales is pegged at $621.9 million, suggesting a growth of 6.4% from the year-ago quarter’s tally.
Its second-quarter bottom-line estimates, pegged at a loss of 34 cents per share, imply a deterioration from the year-ago quarter’s loss of 6 cents. The estimate has declined by a penny over the past 60 days.
Array Technologies ARRY currently has an Earnings ESP of +0.92% and a Zacks Rank #3. The Zacks Consensus Estimate for Array’s second-quarter sales suggests growth of 4.9% from the prior-year reported figure.
Its second-quarter earnings estimates, pegged at 20 cents per share, call for an improvement of 122.2% from the year-ago quarter’s tally. ARRY has a four-quarter earnings surprise of 229.86%, on average.
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First Solar, Inc. (FSLR) : Free Stock Analysis Report
Array Technologies, Inc. (ARRY) : Free Stock Analysis Report
SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
Sunrun Inc. (RUN) : Free Stock Analysis Report
