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Q3 24 Balance Sheet: First Solar Increases Revenue And Profit - Annual Forecast Canceled - Share Price Falls

Tempe, USA - The US solar company First Solar earned significantly more in the first nine months of 2024 than in the same period of the previous year. The share price nevertheless fell significantly.

Net sales from January to September amounted to 2.69 billion US dollars. Compared to the same period last year, this is a significant increase of 24.6 percent (Jan - Sep 23: USD 2.16 billion). With a profit of USD 898.9 million, the net result is even around 87% higher than in the same period last year (Jan - Sep 23: USD 481.5 million). Diluted net earnings per share amounted to USD 8.35 for the first nine months of 2024, compared to USD 4.49 from January to September 2023.

On a quarterly basis, the specialist for thin-film solar technology generated revenue of around USD 887.7 million in Q3 2024 from July to September, which corresponds to an increase of 10.8% compared to the same period of the previous year (Q3 2023: USD 801.1 million). However, revenue in Q3 24 was significantly lower than in the previous quarter Q2 24 due to declines in module sales, and First Solar's Q3 revenue also fell well short of analysts' expectations. Net profit amounted to USD 313 million in Q3 2024. This is an increase of almost 17 percent compared to the same quarter of the previous year (Q3 23: USD 268.4 million). Diluted net profit for the third quarter amounted to USD 2.91 per share, compared to USD 2.5 per share in Q3 2023.

With a view to 2024 as a whole, the First Solar Management Board has lowered its forecast for the sale of solar modules to a range of 14.2 to 14.6 GW (previously 15.6 GW to 16.3 GW). The revenue forecast is correspondingly lower, with the company now forecasting a range of USD 4.1 to 4.25 billion (previously USD 4.4 to 4.6 billion).

“As we approach the end of 2024, we remain pleased with the progress made across our business, navigating against a backdrop of industry volatility and political uncertainty, with a continued focus on balancing growth, profitability, and liquidity,” commented CEO Mark Widmar on the company's current direction. First Solar believes that the company's disciplined, long-term approach will enable it to weather the results of the upcoming US elections and the ongoing volatility in the solar industry, Widmar added.

The First Solar share initially fell sharply in yesterday's trading, but later turned around. At the end of the trading day, the share price was up 2.3 percent at 182.78 euros (closing price, October 30, 2024, Stuttgart Stock Exchange). Compared to the price at the turn of the year, the First Solar share is up 17 percent.



Source: IWR Online, 31 Oct 2024

 


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