First Solar, Inc. (FSLR) reported second-quarter 2024 earnings of $3.25 per share, up a solid 104.4% from the prior-year quarter's reported earnings of $1.59 per share. The bottom line also beat the Zacks Consensus Estimate of $2.67 by 21.7%. The year-over-year improvement in the bottom line can be attributed to solid sales and gross profit growth, along with lower operating expenses, compared to the prior-year quarter's level. Sales Update First Solar's second-quarter net sales were $1.01 billion, which su ...

First Solar Q2'24 Earnings Call July 30, 2024 | Important Information Cautionary Note Regarding Forward Looking Statements This presentation contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this presentation, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: demand for our technology, o ...

Financial Data and Key Metrics Changes - Second quarter net sales were $1 billion, an increase of $0.2 billion compared to the first quarter, driven by a 24% increase in megawatt volume sold [22][23] - Gross margin improved to 49% in the second quarter from 44% in the first quarter, attributed to a higher mix of U.S. factory modules sold and $255 million in Section 45X tax credits [22][23] - Earnings per diluted share for the second quarter were $3.25, with a net cash balance of $1.2 billion at quarter-end [8][24] Business Line Data and Key Metrics Changes - The company secured a net 0.9 gigawatts of bookings since the last earnings call, bringing year-to-date net bookings to 3.6 gigawatts, with a total contracted backlog of 75.9 gigawatts [7][8] - The average selling price (ASP) for the new bookings was $0.316 per watt, excluding adjusters [7][18] - The total pipeline of potential bookings increased to 80.6 gigawatts, with mid- to late-stage opportunities at 28.6 gigawatts [20] Market Data and Key Metrics Changes - The company noted a significant portion of its backlog includes opportunities to increase ASP through adjusters, potentially adding up to $0.7 billion in revenue if fully realized [18] - The U.S. market continues to show strong demand for solar energy, with data center-driven energy demand expected to increase by 15% to 20% annually through 2030 [46][47] Company Strategy and Development Direction - The company is focused on expanding its manufacturing capacity, with the Ohio facility completed and commercial shipments beginning as scheduled [10][11] - Investment in R&D infrastructure is a priority, with nearly $0.5 billion allocated to enhance thin-film technology and develop next-generation solar technologies [12][31] - The company aims to maintain its competitive edge against Chinese manufacturers by leveraging its domestic manufacturing capabilities and advocating for stronger trade policies [33][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged external uncertainties, particularly related to policy and supply conditions, which could impact the industry [9][28] - The upcoming U.S. elections are expected to create a pause in bookings as developers assess the potential policy changes [62] - Despite uncertainties, the company remains optimistic about long-term demand for renewables, driven by various sectors including data centers and manufacturing reshoring [38][46] Other Important Information - The company is on track to launch its CuRe program in Q4 2024, which is expected to enhance energy production through improved module performance [8][13] - The company has established a new world record CadTel research cell with a conversion efficiency of 23.1% [13][44] Q&A Session Summary Question: Clarification on bookings and ASP - The ASP reported includes the impact of a cancellation, but the overall ASP remains consistent with previous reports [55] Question: Key milestones for the Louisiana project - The first milestone will be the completion of the building construction, with tool move-in expected in Q1 to Q2 of 2025 [59] Question: Impact of the election on bookings - Initial pauses in bookings are expected due to uncertainty, but a favorable outcome for domestic manufacturing could accelerate momentum post-election [63][64] Question: Pricing environment and bookings from U.S. fabs - Some bookings included India domestic volume, but the pricing environment has firmed up recently, with ASPs remaining competitive [72]

First Solar (FSLR) came out with quarterly earnings of $3.25 per share, beating the Zacks Consensus Estimate of $2.67 per share. This compares to earnings of $1.85 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 21.72%. A quarter ago, it was expected that this largest U.S. solar company would post earnings of $1.90 per share when it actually produced earnings of $2.20, delivering a surprise of 15.79%.Over the last four quarter ...

Chuck Smith monitors the manufacturing process of the series 6 solar panels during a tour of a First Solar plant in Walbridge, Ohio, U.S., October 6, 2021. Picture taken October 6, 2021.First Solar reported second-quarter results Tuesday that beat revenue and earnings expectations, but the solar technology company left its forecast for the year unchanged.First Solar stock rose about 1% in extended trading.Here is what First Solar reported for the second quarter compared with what Wall Street was expecting, ...

Financial Performance - Net sales for Q2 2024 increased by 25% to $1.0 billion compared to $0.8 billion in Q2 2023, driven by higher module sales volume and increased average selling price per watt[156] - Gross profit margin for Q2 2024 rose to 49.4%, up 11.1 percentage points from 38.3% in Q2 2023, due to higher utilization, advanced manufacturing credits, and a contract termination payment[157] - The company's gross profit margin improved to 49.4% in Q2 2024, up from 38.3% in Q2 2023, driven by cost efficiencies and operational improvements[189] - The company's operating income margin increased to 36.9% in Q2 2024, compared to 20.8% in Q2 2023, reflecting improved cost management and higher sales[189] - The company's net income margin rose to 34.6% in Q2 2024, up from 21.0% in Q2 2023, driven by higher profitability and reduced litigation losses[189] - Net sales from the modules segment increased by $206.5 million (26%) for the three months ended June 30, 2024, driven by a 21% increase in volume and a 4% increase in average selling price per watt[193] - Net sales from the modules segment increased by $463.4 million (35%) for the six months ended June 30, 2024, driven by a 29% increase in volume and a 5% increase in average selling price per watt[194] - Cost of sales increased by $11.3 million (2%) for the three months ended June 30, 2024, with a decrease of 11.1 percentage points as a percent of net sales, primarily due to higher module sales volume and advanced manufacturing production credits[199] - Cost of sales increased by $23.2 million (2%) for the six months ended June 30, 2024, with a decrease of 15.7 percentage points as a percent of net sales, driven by higher module sales volume and advanced manufacturing production credits[200] - Gross profit increased by $188.5 million (61%) for the three months ended June 30, 2024, with gross profit as a percentage of net sales rising to 49.4% from 38.3%[202] - Gross profit increased by $422.4 million (100%) for the six months ended June 30, 2024, with gross profit as a percentage of net sales rising to 46.8% from 31.1%[203] - Research and development expense increased by $15.2 million (41%) for the three months ended June 30, 2024, primarily due to higher depreciation, maintenance costs, and employee compensation[208] - Research and development expense increased by $27.4 million (41%) for the six months ended June 30, 2024, driven by investments in R&D facilities and equipment and increased headcount[208] - Selling, general, and administrative expense remained consistent at $46.6 million for the three months ended June 30, 2024, representing 4.6% of net sales[206] - Selling, general, and administrative expense remained consistent at $92.4 million for the six months ended June 30, 2024, representing 5.1% of net sales[206] - Production start-up expenses for the three months ended June 30, 2024 increased by $4.07 million (17%) compared to the same period in 2023, primarily due to the fourth manufacturing facility in the U.S. expected to commence operations in the second half of 2024[211] - Foreign currency loss, net for the three months ended June 30, 2024 increased by $4.99 million (107%) compared to the same period in 2023, largely due to higher costs associated with hedging activities related to subsidiaries in India[213] - Interest income for the three months ended June 30, 2024 decreased by $427,000 (2%) compared to the same period in 2023, despite higher yields on investments, due to lower average holdings of time deposits[215] - Interest expense, net for the three months ended June 30, 2024 increased by $8.35 million (>500%) compared to the same period in 2023, primarily due to additional borrowing under various arrangements in India[218] - Income tax expense for the three months ended June 30, 2024 increased by $9.88 million (55%) compared to the same period in 2023, primarily due to higher pretax income and a discrete tax expense of approximately $6 million related to the reversal of indefinite reinvestment assertion[223][224] - As of June 30, 2024, the company had $1.7 billion in cash, cash equivalents, and marketable securities, a decrease from $2.1 billion as of December 31, 2023, driven by purchases of property, plant, and equipment for U.S. and Indian facilities[228] - In July 2024, the company repatriated $1.0 billion of offshore funds after reversing its position to indefinitely reinvest the accumulated earnings of a foreign subsidiary[229] - Net cash provided by operating activities increased to $460.7 million in June 2024, primarily driven by proceeds from the sale of Section 45X credits[238][239] - Net cash used in investing activities decreased to $675.9 million in June 2024, due to lower purchases of marketable securities and higher investments in U.S. and Indian facilities[238][240] Manufacturing and Production Capacity - Total installed production capacity reached 17.6 GW as of June 30, 2024, with 3.7 GW produced and 3.4 GW sold in Q2 2024[157] - The company expects to reach an annual manufacturing capacity of over 25 GW by the end of 2026, with new facilities in the U.S. set to commence operations in late 2024 and 2025[156] - The company is expanding its manufacturing capacity by approximately 7.6 GW, including new facilities in the U.S. and capacity expansions at existing sites[187] - The company plans to invest approximately $1.4 billion in expanding U.S. manufacturing facilities, with operations expected to commence in the second halves of 2024 and 2025[232] - Capital expenditures for 2024 are projected to be between $1.8 billion and $2.0 billion, including new facilities and upgrades to increase module wattage and production capacity[233] Research and Development - The company achieved a new world record CdTe research cell conversion efficiency of 23.1%, certified by the U.S. Department of Energy's National Renewable Energy Laboratory[158] - The company completed construction of a dedicated R&D innovation center in Ohio, featuring a pilot manufacturing line for thin film and tandem PV modules[158] - The company is exploring multi-junction solar cell technologies, combining thin film PV with high-efficiency semiconductors, to significantly increase module efficiency[167] - The company commissioned a dedicated R&D innovation center in July 2024, featuring a high-tech pilot manufacturing line for thin film and tandem PV modules[233] Product Innovation and Sales - The company delivered its first bifacial solar modules to customers in Q2 2024, featuring an innovative transparent back contact design[165] - The company's CdTe modules use only 2% to 3% of the semiconductor material compared to conventional crystalline silicon solar modules, significantly reducing manufacturing costs[169] - The company's solar modules are warranted to produce at least 98% of their labeled power output rating in the first year, with a degradation factor of 0.3% to 0.5% annually over a 30-year warranty period[171] - The company has entered into contracts for the future sale of 74.6 GW of solar modules, with an aggregate transaction price of $22.3 billion, expected to be recognized as revenue through 2030[186] Government Incentives and Funding - The company sold $687.2 million of Section 45X tax credits for $659.7 million in cash proceeds, received in the first half of 2024[158] - The company expects to qualify for the advanced manufacturing production credit under Section 45X of the IRC, which provides benefits for solar modules and components manufactured in the U.S.[176] - The company received $44 million in U.S. government funding for CdTe development and perovskite tandem PV product manufacturing R&D projects[177] - The company was allocated INR 11.8 billion ($143 million) under India's Production Linked Incentive (PLI) scheme to promote high-efficiency solar module manufacturing[179] - The company expects to qualify for a Section 45X advanced manufacturing production credit of approximately $0.17 per watt for each solar module produced in the U.S. and sold to third parties, providing significant funding from 2023 to 2032[230] - In December 2023, the company sold $687.2 million of Section 45X tax credits for $659.7 million in cash proceeds, received in full by June 30, 2024[230] Operational and Strategic Initiatives - The CuRe program, aimed at replacing copper in semiconductor structures, is expected to complete lead line implementation in late 2024 and be replicated across facilities by late 2025[166] - The company has established a trust with $200.2 million in restricted marketable securities and $1.8 million in restricted cash for solar module collection and recycling obligations, with a liability of $134.8 million as of June 30, 2024[235] - The company has long-term supply agreements for raw materials, with termination penalties of up to $518.5 million as of June 30, 2024[234] - The company has no off-balance sheet debt or third-party debt guarantees as of June 30, 2024[237]

EXHIBIT 99.1 News Release First Solar, Inc. Announces Second Quarter 2024 Financial Results • Net sales of $1.0 billion • Net income per diluted share of $3.25 • Net cash balance of $1.2 billion • Maintain full-year 2024 guidance • YTD net bookings of 3.6 GW; 0.9 GW since first quarter earnings call with an average selling price of 31.6 cents per watt, excluding adjusters and India domestic sales • Expected sales backlog of 75.9 GW TEMPE, Ariz., July 30, 2024 – First Solar, Inc. (Nasdaq: FSLR) (the "Company ...

First Solar (FSLR) is scheduled to release second-quarter 2024 results on Jul 30, after market close. The Zacks Consensus Estimate for revenues is pegged at $946.2 million, implying a 16.7% improvement from the year-ago quarter's reported figure. The consensus mark for second-quarter earnings is pegged at $2.67 per share, suggesting a 44.3% surge from $1.85 reported in the prior-year quarter. The bottom-line estimate has, however, moved down 5.3% in the past 60 days.Image Source: Zacks Investment ResearchFi ...

The market expects First Solar (FSLR) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released o ...

Overall, renewable energy is considered to be one of the most promising industries for long-term investment; however, not every one of these renewable energy stocks is poised to bring a profit.The renewable energy sector is highly dependent on government policy and subsidies, which are not always reliable due to the political environment. Variations in the levels of regulatory support can affect the feasibility and returns of renewable energy projects. Thus, companies almost entirely dependent on subsidies ...