First Solar Q2 sales fall 4% on contract terminations, meet expectations
FSLR•Outlook
- First Solar maintains 2026 net sales guidance of $4.9 bln to $5.2 bln
- Company expects Q3 module sales of 3.9 GW to 4.5 GW
- First Solar forecasts Q3 adjusted EBITDA between $625 mln and $775 mln
Overview
- US solar module maker's Q2 sales fell 4% yr/yr, meeting analyst expectations
- Q2 net income per diluted share rose 23% yr/yr to $3.92
- Sales decline driven by customer contract terminations, partly offset by higher module sales volume
Key Details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q2 Sales | Meet | $1.06 bln | $1.06 bln (26 Analysts) |
| Q2 EPS | $3.92 | ||
| Q2 Net Income | $422.57 mln | ||
| Q2 Gross Profit | $605.004 mln | ||
| Q2 Operating Expenses | $154.62 mln | ||
| Q2 Operating Income | $450.39 mln | ||
| Q2 Pretax Profit | $459.38 mln |
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 27 "strong buy" or "buy", 13 "hold" and 3 "sell" or "strong sell". The average consensus recommendation for the renewable energy equipment & services peer group is "buy". Wall Street's median 12-month price target for First Solar Inc is $260.00, about 30.5% above its July 29 closing price of $199.24. The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago.
