First Solar sinks after guiding for FY 2022 EPS as low as breakeven

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First Solar (NASDAQ:FSLR) -12.8% post-market after reporting Q4 earnings of $1.23/share, which may not be comparable to analyst consensus of $1.08, but issuing FY 2022 earnings guidance of breakeven to $0.60/share, far below $1.93 analyst consensus estimate.

Q4 revenues rose 49% Y/Y to $907M from $584M in the year-ago quarter, but Wall Street had called for $925M in sales, and the company sees FY 2022 net sales of $2.4B-$2.6B, below $2.73B consensus.

Also for FY 2022, First Solar forecast operating income of $55M-$150M, gross margin of $155M-$215M, capital spending of $850M-$1.1B, and year-end net cash balance of $1.1B-$1.35B.

First Solar also said it is in advanced stage discussions to sell its project development and O&M platform in Japan.

"Much of the solar PV manufacturing industry faced supply chain, logistics, cost and pandemic-related challenges" in 2021, CEO Mark Widmar said, but First Solar's FY 2021 EPS "came in above the midpoint of the guidance range we provided" at the time of its Q3 earnings call.

First Solar shares have declined 7% during the past year, including a 13% YTD drop.

Comments

[EBIX EBUCKS]

Please calm, and look at the long game.

[pat45]

people not buying as much solar and FSLR has a hard time competing in market on both price and quality/options

[Power Master]

Hiring cheap fresh engineers backfired. Time to get rid of CEO

[Turre]

The issue I have is that 4 years ago it was said that First Solar will be soon printing money when they complete the Series 6 roll out. Well, now they have and it still is very challenging and Cure program is needed to not make loss. And Cure is not even enough so Series 7 is required to make money but lots of costs for new factories. I hope First Solar will finally be in 2024 at a position where they are more comfortable margin wise and just add scale to even make more money. Off course optimization and innovation is always required but seems First Solar is always a couple of steps behind great profitability no matter what they do.

[srivaud]

@Turre
2022 was always gonna be a weak year in terms of their ramp, that's just how the math works out. The margins work out about 2-4 cents per watt weaker than I would of liked but that's what happens when shipping goes from 2 cents a watt to 5.

I really don't understand why you're invested in the company if this is your perspective.

[Turre]

@srivaud What brings you to the conclusion below? I haven’t talked about my portfolio.

”I really don't understand why you're invested in the company if this is your perspective.”

[srivaud]

@Turre
You literally comment on most of the articles it would be abit absurd if you devote that much energy without having a position.

[Sound Investments]

Can someone tell me why FSLR revenue is projected to decrease YoY. Is that just because the price they get per watt is decreasing?

[Turre]

@libertariansrus Yes.

[Tom Dailey]

@libertariansrus The company transitioned from essentially being a project development company with a side business selling modules to all module sales. That is why revenue has gone down over the past few years even though module shipments have quadrupled. The projects have been sold so finally this quirk that gets so many people confused will go away.

[Tom Dailey]

If First Solar wanted to, it could call the extra $2.50/W shipping expenses and the $100M new factory startup expenses non-GAAP and claim a 2022 EPS of $3. That would have been called a huge beat and the stock likely would have soared. So weird how companies are measured not by how well they are doing but by how well some analysts guess how well the company will do.

[brettze]

I know that too many liberals voted for their Republican senators and representatives.. while voting for President Biden and VP Harris, because they dont want utiilty solar farms in their backyards..

[arnold.bird]

Solar panels are great but the solar panel business is awful. Could go back to $30/share.

[brettze]

FSLR canalways cancel the backlogs and give to other customers with higher bids and step up in lines if they want to anyday.. those who alredy inked with fSLR were forcing FSLR to lower prices needlessly. they re taking advantage of FSLR.. Could CEO Widmar fix that .. if not, He probably need to go .. and we find antoher CEO who can kick out the customers and get new cusomters with better prices that will improve FSLR revenues with every quarter beat..
Anything can happen.. Oil prices can go up so high that FSLR will be allowed to tear up contracts and make new contracts to add to backlog hat will double triple quadruple. FSLR stock can soar!
Today is a lousy snapshot about FY22 .. fake ! it can change for much better.. I think FSLR can cancel contracts only if newe customers offer much better prices by a wide enough margin.. I can undestand the respect of contracts unless oil p;rices get so wy high that it makes no sense to honor the old contracts ..

[brettze]

Climate change will continue as long as FSLR has yet to double revenues year to year .. this is what it will take to make a tiny dent into climate change.. maybe this doesnt matter at all. you can hold your oil stocks and collect dividends while our reservoirs is getting depleted from droughts because of climate change.. you can tell me that climate change occured millioins years ago.. oh this is bad timing , you say. we will pass that.. Sure thing, pal! what a crazy thing of you to say.

[Iron Eagle]

@brettze - eh, currently there is a madman the likes of Hitler with an itchy finger on a stockpile of nuclear weapons. We should probably focus on that problem first or there won’t be a planet to worry about later.

[brettze]

@Iron Eagle oh you got it all reverse!!! hell those nukes are to be used as suicide pills for our mankind once we realize that we are well beyond any hopes of reversing climate change that continue to heat up ..non stop.. I cannot imagine consecutive 100+ degree summer days for months .. even in places that were once cool lke San Franciso for example.. Things will worsen , I guarantee you.. There is no such madman around , believe me unless we miss the whole friggin forest fo the damn mad trees!! WE are all gone mad12

[breastdoc]

The company is reactive instead of being proactive. We need a change of the CEO and COO and a Board of Directors that acts like a Board of Directors instead of being yes people

[ckarabin]

Breakeven? What a poorly run company!

[brettze]

@ckarabin WE lost the climate change battle today! What could ahve happened is that FSLR can double revenues every year that is what it really takes to make it meaningful .. Everybody just flock back to oil stocks.. Presidnet Biden returned to the strategic oil reserves like a drunk returning to his favorite bar. nothing changes to this date.. all is bounced rubbish .. Wait next summer and see how climate change worsens. or the drought and so many other happenings just because we think we are smart for owning oil stocks.. Guess who is poorly run , again? Tell me !?

[ckarabin]

@brettze We have an energy shortfall TODAY, right now. So how would you suggest we fill that then. Not 5 years from now, but today. If you can fire up renewables by tomorrow afternoon, let's do that. Can we? If not, then using the energy storage that we have is the only way to replace it right now. Maybe someday that will be different.

[brettze]

@ckarabin All our rooftop solar intallers can band together to form utiltiy solar farm insallers themselves.. There is plenty of work for them .. no to worry.. They dont need to knock front doors anymore.. they can move out in the country boonies and roll up sleeves.. ti build out!
Oil companies is keeping First Solar from growing fast.. while touting their phony carbon free plans.. Liberals are stil dumb from wokeism.