What's in the Cards for First Solar (FSLR) in Q1 Earnings?
First Solar, Inc. FSLR is slated to report first-quarter 2022 results on Apr 28 after the closing bell.
In the last reported quarter, the company deliveredan earnings surprise of 14.95%. First Solar has a trailing four-quarter earnings surprise of 26.49%, on average.
Factors to Note
The strong volume growth in shipments and solid bookings for the company’s microinverters is expected to have boosted First Solar’s first-quarter revenues. Additionally, the increased production rate of Series 6 is expected to have contributed to FSLR’s top line in the first quarter.
However, as the global freight market continues to experience record levels of scheduled delays and reliability issues, the company is expected to have shipments in transit, not recognized as revenues, in the first quarter. This, in turn, might have impacted the performance of the top line in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $591.1 million, suggesting a decline of 26.4% from the year-ago reported figure.
From the cost perspective, the rising ocean freight costs, raw material costs, elevated framing costs and higher production start-up expenses are likely to have dampened First Solar’s earnings in the to-be-reported quarter. However, the module cost-reduction programs attained by the company to reduce the cost per watt are likely to have contributed to the soon-to-be-reported quarter’sbottom line.
Additionally, an improvement in module efficiency costs is also likely to have contributed tothe soon-to-be-reported quarter’sbottom line.
The Zacks Consensus Estimate for First Solar’s first-quarter earnings is pegged at a loss of 41 cents per share,suggesting a deterioration from the year-ago quarter’s reported earnings of $1.96.
First Solar, Inc. Price and EPS Surprise
First Solar, Inc. price-eps-surprise | First Solar, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for FSLR this time. The combination of a positive Earnings ESPand a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.
Earnings ESP:The company’s Earnings ESP is +5.34%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: First Solar currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three companies you may want to consider from the same sector as they have the right combination of elements to post an earnings beat this season:
SolarEdge Technologies SEDG currently has an Earnings ESP of +4.75% and a Zacks Rank #3. The Zacks Consensus Estimate for SolarEdge’s Q1 earnings, pegged at $1.32, implies a year-over-year improvement of 34.7% from the prior-year reported figure.
The company boasts a long-term earnings growth rate of 24.7%. SEDG has a four-quarter earnings surprise of 0.42%.
SunPower SPWR currently has an Earnings ESP of +26.31% and a Zacks Rank #3. The Zacks Consensus Estimate for its Q1 earnings, pegged at 3 cents per share, implies a year-over-year decline of 40% from the prior-year reported figure.
The Zacks Consensus Estimate for SunPower’s Q1 sales suggests year-over-year growth of 9.2% from the prior-year reported figure. SPWR has a four-quarter earnings surprise of 8.33%.
Devon Energy DVN currently has an Earnings ESP of +4.16% and a Zacks Rank #1. The Zacks Consensus Estimate for Devon Energy’s Q1 earnings, pegged at $1.68, implies a year-over-year improvement of a solid 273.3% from the prior-year reported figure.
The company boasts a long-term earnings growth rate of 51.4%. DVN has a four-quarter earnings surprise of 18.51%.
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