A worker installs First Solar Inc. photovoltaic solar panels at the Agua Caliente Solar Project in Yuma County, Arizona.
Joshua Lott | Bloomberg | Getty Images
Shares of First Solar dropped more than 14% during extended trading Tuesday after the company reported missing revenue expectations during the fourth quarter and issued weak full-year guidance.
The solar-panel manufacturer has faced rising raw material costs and supply chain bottlenecks.
Here’s how the company did relative to estimates compiled by Refinitiv:
- EPS: $1.23 per share vs. $1.06 expected
- Revenue: $907 million vs. $918 million
First Solar’s full-year guidance also came up short of Wall Street’s expectations. The company expects revenue between $2.4 billion and $2.6 billion, while Wall Street was calling for $2.76 billion.
The company expects earnings per share to be between breakeven and 60 cents for the full year, well short of the $1.92 analysts were expecting.
First Solar CEO Mark Widmar said the solar manufacturing industry faced a year of “supply chain, logistics, cost, and pandemic-related challenges.”
The company also announced that it’s in advanced stage discussions to sell its project development and operations and maintenance platform in Japan.
Looking ahead, Widmar said 2022 will be a “pivotal year,” with “significant investment” across manufacturing expansion, new producers, R&D and new contracting strategies. Taken together, the company said this will “set the stage for sustained growth in 2023 and beyond.”
This story is developing, please check back for updates.
