(Reuters) – First Solar reported higher first-quarter profit on Wednesday compared with the same period last year, helped by resilient demand for solar power.
The company reported net income of $236.6 million, or $2.20 per share, in the three months ended March 31, compared with $42.5 million, or 40 cents per share, in the same period. period last year.
Analysts were expecting an average of $1.99 per share, according to LSEG data.
The US solar market has seen significant momentum since last year, helped by regulatory measures like the Biden administration’s Inflation Reduction Act of 2022, which provides tax credits for panels manufactured in the United States.
Furthermore, module supply in the US has remained comparatively insulated from the oversupply witnessed globally due to the Biden administration limiting imports from China by imposing additional tariffs.
First Solar’s revenue was $794.1 million, up from $548.3 million in the same period last year and beating analysts’ estimate of $702.2 million, according to LSEG data.
The company maintained its 2024 revenue and volume forecasts at $4.4 billion to $4.6 billion, and 15.6 gigawatts to 16.3 gigawatts, respectively.
Year-to-date reserves were 2.7 gigawatts, compared to 4.8 gigawatts in the same period last year.
Cash at the end of the first quarter decreased to $1.4 billion from $1.6 billion at the end of the previous quarter, primarily due to capital expenditures related to production capacity expansions in Alabama, Louisiana and Ohio, it said the company.
The average selling price of reserves was 31.3 cents per watt, compared to 31.8 cents per watt in the same period last year.
(Reporting by Seher Dareen in Bengaluru; Editing by Pooja Desai)
