• Revenue: $0.9 billion for the third quarter.

• Gross Margin: 50% in the third quarter.

• Net Income: Earnings per diluted share of $2.91.

• Product Warranty Charge: $50 million due to manufacturing issues.

• Contracted Backlog: 73.3 gigawatts with an aggregate value of $21.7 billion.

• Production: Record quarterly production of 3.8 gigawatts.

• Cash and Cash Equivalents: $1.3 billion at the end of the quarter.

• Total Debt: $582 million at the end of the third quarter.

• Cash Flows Used in Operations: $54 million in the third quarter.

• Capital Expenditures: $434 million during the period.

• Full-Year Earnings Guidance: $13 to $13.50 per diluted share.

• Full-Year Net Sales Guidance: $4.1 billion to $4.25 billion.

• Warning! GuruFocus has detected 5 Warning Signs with FSLR.

Release Date: October 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• First Solar Inc (NASDAQ:FSLR) achieved a record quarterly production of 3.8 gigawatts, demonstrating strong manufacturing capabilities.

• The company inaugurated a new $1.1 billion Alabama facility, adding 3.5 gigawatts of solar manufacturing capacity, with plans for further expansion in Louisiana.

• First Solar Inc (NASDAQ:FSLR) has a robust contracted backlog of 73.3 gigawatts, providing long-term revenue visibility.

• The company is launching CuRe production, aiming to enhance its technology offerings and capture additional revenue through contractual adjusters.

• First Solar Inc (NASDAQ:FSLR) was recognized by MIT Technology Review and Time Magazine for its leadership in solar technology and innovation.

Negative Points

• First Solar Inc (NASDAQ:FSLR) faced a $50 million product warranty charge due to manufacturing issues with its Series 7 product.

• The company experienced operational challenges, including hurricanes and logistical disruptions, impacting financial performance.

• There is ongoing pressure from Chinese dumping in the Indian market, leading to depressed ASPs and strategic shifts in production.

• First Solar Inc (NASDAQ:FSLR) had to terminate a contract with Plug Power due to project delays, impacting its bookings.

• The company is facing intellectual property challenges within the solar manufacturing sector, particularly related to TOPCon patents.

Q & A Highlights

Q: Can First Solar's recent facilities qualify for the US ITC benefits for wafer and ingot production, and what is the outlook for bookings prices? A: Mark Widmar, CEO, stated that First Solar is evaluating the potential applicability of the ITC benefits to their facilities. The intent of the IRA is to be technology-neutral, providing similar benefits across technologies. Regarding bookings prices, Alex Bradley, CFO, noted that the $0.304 per watt ASP for recent bookings is not indicative of a trend due to the small volume booked. The ASP includes a mix of US and India volumes, with US bookings at $0.304 per watt, potentially reaching $0.32 with adjusters.