First Solar Q3 Earnings Preview: Economies Of Scale, Backlogs To Boost Margins

Photovoltaic manufacturer and solar energy solutions company, First Solar Inc FSLR, will be reporting its third-quarter earnings after the bell on Tuesday. First Solar is a key player in the solar energy industry, with a focus on sustainable and environmentally friendly energy solutions. The company serves both commercial and utility customers and has a global presence.

Wall Street analysts are watching key metrics. Here’s what they expect.

Key Items to Watch

Analysts and investors see promise in First Solar’s exceptional solar energy conversion yield.

First Solar is poised to benefit from growing demand for solar as the world transitions to using more renewable energy. The company’s finances already boast a healthy backlog of orders and stellar margins. With the company’s growing capacity to meet the increase in demand, economies of scale should help boost margins further.

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Additionally, government initiatives in place to boost clean energy and aid the players operating in the space, should translate to profitability and future growth.

FSLR Stock: Analyst Ratings & Consensus Estimates

For the third-quarter, Wall Street analysts are expecting First Solar to report $2.06 in EPS and $900.14 million in revenue. For the fiscal period ending December 2023, the company is expected to report $7.76 in EPS and $3.5 billion in revenue.

Recent analyst reports from 28 analysts over the last 90 days rate the stock a Buy with an average consensus price target of $237.96. However, over the past month, we’ve seen a couple of sell-side analysts slightly lower their price target for First Solar stock. Vikram Bagri of Citigroup has a $214 price target on the stock while Mark Strouse of JP Morgan has a $220. Moses Sutton of Exane BNP Paribas has initiated coverage at $237.

FLSR Stock Price Action

The stock is down over 15% over the past month and stood at $136.32 at Oct. 30 close.

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