A employee installs First Solar Inc. photovoltaic photo voltaic panels on the Agua Caliente Solar Project in Yuma County, Arizona.
Joshua Lott | Bloomberg | Getty Images
Shares of First Solar dropped greater than 16% throughout prolonged buying and selling Tuesday after the corporate reported lacking revenue expectations through the fourth quarter and issued weak full-year guidance.
The solar-panel producer has confronted rising uncooked materials prices and provide chain bottlenecks.
Here’s how the corporate did in its fourth-quarter outcomes relative to estimates compiled by Refinitiv:
- EPS: $1.23 per share vs. $1.06 anticipated
- Revenue: $907 million vs. $918 million
First Solar’s full-year guidance additionally got here up wanting Wall Street’s expectations. The firm expects revenue between $2.4 billion and $2.6 billion, whereas Wall Street was calling for $2.76 billion.
The firm expects earnings per share to be between breakeven and 60 cents for the complete yr, effectively wanting the $1.92 analysts have been anticipating.
First Solar CEO Mark Widmar mentioned the solar-manufacturing trade confronted a yr of “provide chain, logistics, price and pandemic-related challenges.”
The firm additionally introduced that it is in advanced-stage discussions to promote its undertaking improvement and operations and upkeep platform in Japan.
Looking forward, Widmar mentioned 2022 will likely be a “pivotal yr,” with “vital funding” throughout manufacturing growth, new producers, R & D and new contracting methods.
But, on the convention name following the corporate’s quarterly replace, administration conceded that 2022 is anticipated to be a difficult yr from an earnings standpoint, particularly as a result of elevated freight prices. Prices for contracted volumes have risen between 200% and 300% above pre-pandemic ranges, First Solar mentioned. In 2022, the corporate expects contracted freight charges to leap 100% yr over yr.
Along with elevated prices, transit instances even have elevated, whereas “reliability and availability has considerably worsened, pushing extra quantity into a better worth spot market.”
The firm additionally pointed to rising commodity prices, together with a 40% soar in metal costs all through 2021.
This story is growing, please verify again for updates.