The strong Q3 performance of First Solar is reflected in its stock price as the shares have upturned the loss seen on Tuesday and now are over 14% up.
The shares of First Solar Inc (NASDAQ: FSLR) has seen a massive surge in the pre-market following the release of impressive Q3 performance. Per the reports, the company reported a Net sales of $928 million with a net income per share coming in at $1.45, a big boost from the $0.35 reported in the second quarter 2020. This performance was better than the expected earnings of 61 cents per share on sales of $688 million, according to estimates polled by Refinitiv analysts.
The reported net sales as outlined by the company saw an additional $285 million increase from the second quarter and this increment was fueled in part by the international product sales as well as an increase in the volume of module sales supplied to third parties. First Solar also revealed net cash of $1.4 billion while the company’s cash, restricted cash, and marketable securities were pegged at $1.7 billion.
“We delivered strong financial results for the third quarter,” said Mark Widmar, CEO of First Solar. “The dedication we continue to witness from our associates enabled us to expand module segment gross margin, close the sales of our Ishikawa, Miyagi, and Anamizu projects in Japan, and increase earnings per share quarter-over-quarter. This result reflects the strengths of our competitively advantaged CdTe modules and vertically integrated manufacturing process.”
The Q3 performance of First Solar is reflected in its stock as the shares have upturned the loss seen on Tuesday when it closed at US$82.39 (1.62% dip) with a continuous upward surge in the pre-market. The shares are now up by 14.09% at US$94.00 as of the time of writing. First Solar shares are up 47% this year and UBS Group AG (SWX: UBSG) analysts currently have a buy rating on the stock according to CNBC.
After Strong Q3 Results First Solar Reinstates Its Q4 and Full Year Financial Guidance
The impressive performance of First Solar has prompted the company to reinstate its fourth quarter and full-year financial guidance, the figures it earlier withdrew owing to the uncertainties that were presented as a result of the coronavirus pandemic. According to First Solar, the reinstating of its Financial Guidance became pertinent owing to the fact that the pandemic has not impacted the firm’s financial results negatively as it anticipated.
The company thus projects a $540 million to $790 million net sales in the fourth quarter while the overall net sales for the 2020 financial year are projected at $2.6 billion to $2.9 billion. The renewable energy powerhouse hopes to make 1.8GW to 2.0GW shipments in the fourth quarter and approximately 5.5GW to 5.7GW for the full year.
The company has a modest earning per share for Q4 coming in at $1.00 to $1.50 while the figure for the full year is pegged at $3.65 to $4.15. The continuous rise in the coronavirus cases may plunge some nations into another round of lockdown but the firm’s projections are expected to be achievable should have conditions remain equal.