First Solar Inc (NASDAQ:FSLR) reported third quarter earnings that fell short of analyst expectations, with revenue significantly missing estimates and the company lowering its full-year guidance. Shares of the solar panel manufacturer dropped 5% following the announcement.
First Solar posted Q3 adjusted earnings per share of $2.91, missing the analyst consensus of $3.11. Revenue for the quarter came in at $887.67 million, well below the expected $1.07 billion and down from $1 billion in the previous quarter. The company attributed the revenue decline to lower module sales volumes and a $50 million product warranty reserve charge.
For the full year 2024, First Solar lowered its guidance, now expecting earnings per share between $13.00 and $13.50, compared to the previous analyst consensus of $13.44. The company also reduced its revenue forecast to a range of $4.1 billion to $4.25 billion, down from the prior consensus of $4.44 billion.
Despite the challenging quarter, CEO Mark Widmar expressed satisfaction with the company's progress, stating, "As we approach the end of 2024, we remain pleased with the progress made across our business, navigating against a backdrop of industry volatility and political uncertainty."
First Solar reported a decrease in its net cash balance to $0.7 billion from $1.2 billion in the previous quarter, primarily due to capital expenditures for new U.S. factories in Alabama and Louisiana.
The company's year-to-date net bookings stood at 4.0 GW, with 0.4 GW added since the second quarter earnings call. First Solar's expected sales backlog remains robust at 73.3 GW.
This content was originally published on Investing.com
