First Solar posted another profitable quarter, but the tone of its guidance was more cautious, trimming the top end of revenue and shipment expectations despite strong execution in Q3. The result was in line at the earnings level but slightly light on margins and operating income, leaving investors focused on the tightening of FY guidance.
- Net sales: US$1.59b (vs est. US$1.61b) — +79% YoY.
- 3Q EPS US$4.24 (vs est. US$4.23) — broadly in line.
- Operating income: US$466m (vs est. US$492m).
- Gross margin: US$2.10–2.20b (FY guide, down from US$2.05–2.35b prior).
In terms of FY guidance, they said net sales would be US$4.95–5.20b (prior US$4.9–5.7b; cons. US$5.29b), and EPS of US$14.00–15.00 (prior US$13.50–16.50; cons. US$15.15).
First Solar continues to execute well, but this was a “tighten and temper” update, the midpoints of guidance moved lower, reflecting margin pressure and softer shipment assumptions. The long-term thesis remains intact, supported by a strong contracted backlog and competitive technology. Shares were trading mildly higher after hours.
MM remains and long and bullish FSLR
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