Solar manufacturer First Solar reported earnings late Tuesday that topped estimates and raised the lower end of its guidance. FSLR stock was rising in early trading Wednesday, with First Solar breaking from a trend of bad news for solar stocks.
For its third quarter ended Sept. 30, First Solar reported adjusted earnings of $2.50 per share on revenue of $801 million. Analysts were expecting First Solar to post adjusted earning of $2.05 per share on revenue of $904 million.
On the stock market today, FSLR stock rose more than 3% to 147.03 in early trades.
FSLR Stock: Upped Guidance, Backlog Grows
First Solar is a Tempe, Ariz.-based manufacturer of solar panels.
For the same quarter last year, First Solar reported an adjusted loss of 46 cents per share on $629 million in sales.
The company on Tuesday raised the lower end of its guidance for the full year. At the midpoint of its range, the company upped its projected operating income from $807 million to $820 million. Further, the firm raised its midpoint estimate for 2023 adjusted earnings to $7.60 per share, from $7.50.
Also, First Solar said it had a backlog of projects representing 81.8 gigawatts, up from 77.8 GW as of the second quarter. Year-to-date booking for First Solar climbed to 27.8 gigawatts, the company said.
"Since our last earnings call, we have made steady progress, establishing the foundations for our long-term growth journey, including investments in manufacturing and the infrastructure needed to rapidly evolve and scale our technology," First Solar CEO Mark Widmar said in a statement.
Struggle For Solar Stocks
Analysts expect that subsidies built into the 2022 Inflation Reduction Act will boost domestic solar manufacturers long term. But it has been a dismal year for solar stocks in general.
The 25 solar stocks tracked by IBD MarketSmith in the Energy-Solar industry group have already lost a cumulative 46% in 2023 as of Thursday. The group is the worst performer among the 197 industry categories tracked by MarketSmith based on six-month price performance.
Last week, solar stocks slid after Enphase Energy published earnings with a gloomy outlook for the rest of the year.
But FSLR stock has held up better, comparatively. Shares were down just under 5% year to date prior to the earnings release Tuesday.
First Solar serves the utility side of the energy market, which has not seen the same level of demand issues as residential. Analysts at Deutsche Bank upgraded the stock in September, followed by an upgrade from Barclays in October.
According to IBD Stock Checkup, FSLR stock has a meager 53 (out of 99) Composite Rating, a combination of five other fundamental and technical ratings. Its EPS Rating is a stronger 82, helped by earnings growth this year.
