What happened
The solar industry has certainly had its ups and downs over the years, to say the least. This week, at least for veteran sector mainstay First Solar (FSLR -2.09%), was one of the bullish periods.
First Solar's stock price soared almost 30% higher over the course of the week, according to data compiled by S&P Global Market Intelligence, thanks to the very encouraging fourth-quarter and full-year results it published on Tuesday.
So what
The quarter saw First Solar book slightly over $1 billion in net sales, which was 10% higher on a year-over-year basis. Net loss narrowed considerably; in fourth quarter 2022 that line item was a bit over $7.5 million, or $0.07 per share. The year-ago deficit was over $49 million.
This made for quite the estimates-crushing performance in terms of the bottom line. On average, analysts tracking the solar company were expecting a far deeper net loss of $0.17 per share. As for revenue, they were on target at $1 billion.
In its earnings release, First Solar said its strong momentum throughout 2022 should continue this year. It quoted CEO Mark Widmar as saying that "We finished 2022 with a record contracted backlog, a significant pipeline of bookings opportunities, and a strong balance sheet placing us in a position to respond to emerging opportunities."
Now what
First Solar is backing this confidence with strong guidance. The company is forecasting that its net sales will be $3.4 billion to $3.6 billion for the entirety of 2023, which would mean growth of at least 30% over the previous year. Earnings per share should come in at $7 to $8, a vast improvement over 2022's net loss of $0.41.
Both ranges are above the collective analyst projections. These are currently $3.34 billion for net sales, and merely $4.77 for per-share net income.
