$FSLR (-5,23%) | First Solar Q3'24 Earnings Highlights:

🔹 EPS: $2.91 (Est. $3.11) 🔴

🔹 Revenue: $887.67M (Est. $1.07B) 🔴

🔹 Net Income: Impacted by a $50M product warranty reserve charge

🔹 GAAP Net Cash Balance: $0.7B (DOWN from $1.2B in Q2'24)

FY24 Guidance:

🔹 Revenue: $4.1B-$4.25B (Est. $4.44B) 🔴

🔹 EPS: $13.00-$13.50 (Est. $13.44) 🟡

🔹 Gross Margin: $1.95B-$2.00B

🔹 Operating Income: $1.48B-$1.54B

🔹 Volume Sold: 14.2GW-14.6GW (Previous 15.6GW-16.3GW)

🔹 Capital Expenditures: $1.55B-$1.65B (Previous $1.8B-$2.0B)

🔹 Net Cash Balance: $0.5B-$0.7B (Previous $0.6B-$0.9B)

Operational Highlights:

🔹 Bookings: 4.0 GW YTD; 0.4 GW added since Q2 earnings call

🔹 Sales Backlog: 73.3 GW

🔹 Product Warranty Reserve Charge: $50M impacting Q3 profit

🔹 Revenue Decrease Driver: Lower MW sold and warranty charge, partially offset by termination payments from customers in the U.S. and India

Financial Metrics:

🔹 Operating Expenses: $123.3M

🔹 R&D Expenses: $50.2M

🔹 Production Start-up Costs: $26.8M

🔹 Cash and Cash Equivalents: $1.01B

🔹 Capital Expenditures: Driven by U.S. factory builds in Alabama and Louisiana

CEO Mark Widmar's Commentary:

🔸 "Despite industry volatility and political uncertainties, we are pleased with our progress. Our disciplined, long-term strategy will help us navigate the outcomes of the U.S. elections and ongoing market fluctuations, ensuring balanced growth, profitability, and liquidity."

Business Highlights:

🔸 Factory Expansion: Capital investments continue for new facilities in Alabama and Louisiana.

🔸 Political & Market Risks: Company monitoring potential impacts of U.S. elections and global solar manufacturing volatility.

🔸 Section 45X Tax Credit: Guidance includes $1.02B-$1.05B tax benefits, offset by ramp costs and production start-up expenses.