First Solar (FSLR), a solar power company, missed its first-quarter expectations by a wide margin on Thursday. FSLR shares fell in extended trading.
Tempe, Arizona-based company earned a 40 cents per share on sales of 548 million dollars in the quarter ending March. Analysts polled by FactSet expected earnings of 99c per share on sales $714m. First Solar had lost 41 cents per share in the previous period on sales of 367 million.
The company also kept its outlook for the full year unchanged. First Solar projects earnings of $7.50 per share in 2023 on sales of $3.55 billion. This is based on its midpoint projections. Analysts predicted earnings for the full year of $7.25 per share, based on sales of $3.54billion.
First Solar will lose 41 cents per share in 2022 on a sales volume of $2.62 Billion.
First Solar Stock Falls After Report
FSLR shares fell 5.3% in after-hours trades today to 190.27. First Solar's stock closed at 200.83 during the regular session on Thursday.
Mark Widmar, Chief Executive, said in a press release that "we entered 2023 with a significantly better commercial, operational and financial position" than the year before. This would set the stage for increased growth and profitability in 2023, as well as beyond.
First Solar is a manufacturer of thin-film, high-efficiency solar panels that are used in commercial and utility-scale installations.
First Solar is expected to benefit from the Inflation Reduction Act that was signed by President Joe Biden into law in August. The law provides $369 billion to expand renewable energy, making it the largest green-energy bill in U.S. history. This law offers tax credits for solar energy and other incentives.
The FSLR stock is a recent breakout
According to IBD Stock Checkup, FSLR is ranked 10th among 24 stocks in IBD’s Energy-Solar Industry Group. First Solar's IBD Composite rating is 49 out of 100.
On March 1, FSLR broke out of a 6-week consolidation pattern on IBD MarketSmith charts at a point to buy.