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 2.17%), 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.
