Q3 2023 Earnings Summary
Reported on Oct 31, 2023 (After Market Close)
Pre-Earnings Price$142.45Last close (Oct 31, 2023)
Post-Earnings Price$148.49Open (Nov 1, 2023)
Price Change
$6.04(+4.24%)
- First Solar has maintained strong bookings at stable pricing, with recent bookings at $0.30 per watt excluding India, and is successfully contracting out to 2029 and 2030, indicating sustained demand and pricing stability.
- The company boasts a record contracted backlog of over 80 gigawatts, providing strong visibility into future revenues and highlighting the value customers place on First Solar's offerings.
- First Solar's Series 7 modules are 100% domestically sourced, making them materially advantaged in enabling the domestic content bonus under the IRA, providing a competitive edge over manufacturers who cannot meet these requirements.
- Potential risk of contract cancellations: Approximately 14% of First Solar's backlog is subject to termination for convenience clauses, allowing customers to cancel orders, possibly impacting future revenues.
- Possible slowdown in future bookings and ASP decline: First Solar anticipates a potential reduction in new bookings in upcoming quarters due to limited supply availability and customers' hesitation to commit to long-dated deliveries. There is also an expectation that prices may decline slightly over the next several quarters.
- Increasing competition from new U.S. manufacturing capacity: Competitors are announcing plans to build solar module manufacturing facilities in the U.S., potentially increasing competition and exerting pressure on First Solar's market share and pricing.
Research analysts covering FIRST SOLAR.