First Solar (FSLR) shares tumbled Friday after the solar power company badly missed expectations for the first quarter. FSLR stock sank more than 9% on the news.
XThe Tempe, Ariz.-based company late Thursday said it earned 40 cents a share on sales of $548 million in the March quarter. However, analysts polled by FactSet had expected earnings of 99 cents a share on sales of $714 million. In the year-earlier period, First Solar lost 41 cents a share on sales of $367 million.
The company blamed customer project timing for the first-quarter shortfall.
Meanwhile, the company kept its full-year outlook unchanged. First Solar predicts 2023 earnings of $7.50 a share on sales of $3.5 billion. That's based on the midpoint of its projections. Analysts had predicted full-year earnings of $7.25 a share on sales of $3.54 billion.
In 2022, First Solar lost 41 cents a share on sales of $2.62 billion.
First Solar Stock Falls After Report
On the stock market today, FSLR stock dropped 9.1% to close at 182.58. During the regular session Thursday, First Solar stock advanced 0.7% to close at 200.83.
"We entered 2023 in a significantly stronger commercial, operational, and financial position than the previous year, setting the stage for growth and improved profitability in 2023 and beyond," Chief Executive Mark Widmar said in a news release.
First Solar specializes in manufacturing high-efficiency, thin-film solar panels used mainly in utility-scale solar power operations and some commercial installations.
Analysts say First Solar will benefit from the Inflation Reduction Act, signed into law by President Joe Biden in August. It provides $369 billion for expansion of renewable energy and stands as the largest U.S. green-energy law ever. The law provides tax credits and other incentives for solar energy purchases.
FSLR Stock Is A Recent Breakout
FSLR stock ranks sixth out of 24 stocks in IBD's Energy-Solar industry group, according to IBD Stock Checkup. First Solar has an IBD Composite Rating of 81 out of 99.
IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
On March 1, FSLR stock broke out of a six-week consolidation pattern at a buy point of 185.38, according to IBD MarketSmith charts.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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