First Solar Inc (FSLR, Financial) announced its financial results for the third quarter ended September 30, 2023, on October 31, 2023. The company reported a net sales decrease of $10 million from the prior quarter, primarily due to a reduction in the volume of modules sold. Despite this, the company's net income per diluted share increased to $2.50 from $1.59 in the second quarter of 2023.
Financial Performance
First Solar Inc (FSLR, Financial) reported a net cash balance of $1.3 billion at the end of the third quarter, a decrease from $1.5 billion at the end of the prior quarter. This decrease was primarily a result of capital expenditures related to manufacturing capacity expansions in Alabama, India, and Ohio, offset by operating cash flows and a final drawdown under the company's India financing facility.
Company's Commentary
Mark Widmar, CEO of First Solar, commented on the company's performance, stating,
Since our last earnings call, we have made steady progress, establishing the foundations for our long-term growth journey, including investments in manufacturing and the infrastructure needed to rapidly evolve and scale our technology. Our growth is underpinned by our points of differentiation and solid market fundamentals, including continued strong demand for our products, proven manufacturing excellence, a uniquely advantaged technology platform, and, crucially, a balanced business model focused on delivering value to our customers and our shareholders."
2023 Guidance
The company has updated its 2023 guidance, maintaining its net sales forecast at $3.4B to $3.6B. The operating expenses are expected to be between $440M to $470M, and the earnings per diluted share are projected to be between $7.20 to $8.00. The net cash balance and capital expenditures remain unchanged at $1.5B to $1.8B and $1.7B to $1.9B, respectively.
Financial Tables
First Solar Inc (FSLR, Financial)'s balance sheet shows a total asset value of $9,582,645,000 as of September 30, 2023, an increase from $8,251,228,000 as of December 31, 2022. The total liabilities stand at $3,280,269,000, while the total stockholders' equity is $6,302,376,000.
The company's statement of operations shows a net income of $268,398,000 for the third quarter of 2023, compared to a net loss of $49,168,000 for the same period in 2022. The net income per share for the third quarter of 2023 is $2.50, compared to a net loss per share of $0.46 for the same period in 2022.
First Solar Inc (FSLR, Financial)'s statement of cash flows shows a net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents of $16,780,000 for the nine months ended September 30, 2023.
These financial results reflect First Solar Inc (FSLR, Financial)'s steady progress in its long-term growth journey, backed by strong demand for its products, proven manufacturing excellence, and a balanced business model.
Explore the complete 8-K earnings release (here) from First Solar Inc for further details.
