Shares of First Solar (FSLR) plunged in after-hours trading after the solar company reported earnings for its third quarter of Fiscal Year 2024. Earnings per share came in at $2.91, which missed analysts’ consensus estimate of $3.13 per share.
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Sales increased by 10.8% year-over-year, with revenue hitting $887.7 million. This also missed analysts’ expectations of $1.07 billion. The decline was mainly due to a drop in MW sales volume and a charge for product warranty reserves, which was partially offset by termination payments from some U.S. and Indian customers.
Guidance for Fiscal Year 2024
Looking forward, management has updated its outlook for Fiscal Year 2024, and it did not make investors happy. In fact, the firm lowered all of its figures and now expects:
- Revenue of $4.1B to $4.25B
- Operating income of $1.48B to $1.54B
- EPS of $13.00 to $13.50
Nevertheless, First Solar CEO Mark Widmar remained positive and stated that the firm expects to work through the outcome of the U.S. presidential election, as well as industry volatility, thanks to its disciplined and long-term approach.
Is FSLR Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on FSLR stock based on 22 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 46% rally in its share price over the past year, the average FSLR price target of $285.81 per share implies 43.14% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
