First Solar Reports Q4 and 2024 Guidance Amid Uncertainty

First Solar addresses 2024 performance and challenges in Q4 earnings call. The company recorded a net sales increase of 27% YoY but faced EPS below expectations.

Date: 26-02-2025

AI Rating: 6

Earnings Per Share (EPS): For the full year 2024, First Solar reported diluted EPS of $12.02, which fell below the low end of the guidance range. However, this still represented a substantial increase from $7.74 in 2023, marking a 55% improvement. This may imply optimism about future growth, despite current challenges affecting investor sentiment.

Revenue Growth: The company achieved full-year net sales of $4.2 billion, which represents a 27% increase year-on-year. This positive trend in sales indicates a robust demand for First Solar's products despite recent operational hurdles.

Net Income: The report does not explicitly state the net income figures, making it impossible to analyze the company's profitability accurately from the available text.

Profit Margins: First Solar reported a gross margin of 44% for the year, which improved by five percentage points from 2023. Though the recent quarterly gross margin dropped to 37%, this is attributed to several one-time factors, particularly related to warranty charges and manufacturing issues. The gross margin improvement over the year generally suggests solid cost management and operational efficiency.

Return on Equity (ROE): There is no mention of ROE in the text, limiting our ability to assess how effectively the company is generating profits from shareholders’ equity.

Outlook and Challenges: The company plans to expand capacity and expects significant operational costs in 2025 due to several factors, including underutilization charges and rising material costs, including anticipated tariffs. Ongoing uncertainties related to trade policies and macroeconomic conditions may affect future pricing power and market sentiment.

Stocks: FSLR