The past year has been extremely difficult for solar companies and First Solar (NASDAQ:FSLR) has been no exception. These companies have experienced a slew of headwinds, such as higher interest rates and falling demand. However, FSLR stock is rising today after reporting its fourth-quarter and 2023 full-year earnings.
For the quarter, revenue tallied in at $1.15 billion, which was below the analyst estimate for $1.3 billion. EPS came in at $3.25, beating the estimate for $3.19.
“Few years have been as consequential to our long-term growth strategy as 2023,” said CEO Mark Widmar. “Over the past year, we scaled manufacturing capacity, mobilized at our latest announced facility in Louisiana, produced and shipped a record volume of modules, expanded our contracted backlog to historic levels, increased R&D investment, and continued to evolve our technology and product roadmap.”
Meanwhile, gross profit shrunk to 43.3% in Q4 compared to 47% during Q3. This was mainly due to increased selling, general and administrative expenses.
FSLR Stock: First Solar Reports Earnings
For the entire year of 2023, revenue was $3.3 billion compared to $2.6 billion a year ago, marking an increase of about 27%. Total EPS for the year was $7.74 as well.
Guidance for 2024 is likely helping send FSLR stock higher today. First Solar expects revenue between $4.4 billion and $4.6 billion with a gross margin between $2 billion and $2.1 billion. Diluted EPS is forecast to be between $13 and $14, signaling increased profitability compared to 2023.
FSLR stock received several positive analyst comments following earnings. Morgan Stanley raised its price target to $245 from $237, adding that FSLR’s valuation is 70% below its “historic multiple” and 50% lower when compared to competitors.
Deutsche Bank joined in, too, raising its price target to $210 from $205. Analyst Corinne Blanchard noted that the “company message is clear and loud […] solid growth ahead, with increased capacity coming online (India currently ramping-up) and two new US facilities being built up.”
However, Susquehanna analyst Biju Perincheril lowered his price target, although just barely, to $258 from $261. FSLR stock carries an average analyst price target of $221.60 among 25 analysts with coverage.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
