First Solar FSLR is scheduled to release second-quarter 2026 results on July 30, after market close. The company delivered an earnings surprise of 12.2% in the last reported quarter.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors Likely to Have Impacted FSLR’s Q2 Performance
First Solar is likely to have continued benefiting from its U.S.-based manufacturing operations during the second quarter. With U.S. manufacturing facilities operating at roughly 96% utilization and the company continuing to prioritize domestic production, these incentives are expected to have remained a major earnings driver. Management also reaffirmed its second-quarter adjusted EBITDA guidance of $400-$500 million, reflecting confidence that these operational strengths will continue to support profitability.
Management highlighted record sales in India during the first quarter and noted that U.S. utility-scale demand remained healthy, supported by the company's differentiated CadTel technology, domestic manufacturing base and independence from Chinese supply chains. Ongoing trade enforcement measures, proposed Foreign Entity of Concern (FEOC) regulations and intellectual property litigation against TOPCon manufacturers are also expected to have strengthened First Solar's competitive positioning during the second quarter.
First Solar entered the to-be-reported quarter with a strong 47.9-gigawatt backlog worth $14.4 billion, providing solid revenue visibility through 2030. The company also maintained disciplined booking practices, helping preserve strong selling prices despite industry uncertainty.
One of the biggest headwinds during the quarter is expected to have been lower production levels at the company's manufacturing facilities in Malaysia and Vietnam. Management stated that these plants would have operated at lower utilization levels than in the first quarter, resulting in higher underutilization charges that would weigh on gross margins. Weak demand for internationally produced modules and uncertainty surrounding U.S. trade policy might have continued to limit production at these facilities.
Q2 Expectations for FSLR
The Zacks Consensus Estimate for earnings is pegged at $2.74 per share, indicating a year-over-year decrease of 13.8%.
The consensus estimate for revenues is pinned at $1.06 billion, implying a 3.3% decrease year over year.
The Zacks Consensus Estimate for Modules megawatt (MW) sold is pinned at 3,739.3 MW compared with 3,554 MW in the year-ago quarter.
What Our Quantitative Model Predicts
Our proven model does not predict an earnings beat for First Solar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here as you will see below.
First Solar, Inc. Price and EPS Surprise
First Solar, Inc. price-eps-surprise | First Solar, Inc. Quote
Earnings ESP: The company’s Earnings ESP is +15.75%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, First Solar carries a Zacks Rank of 4 (Sell).
You can see the complete list of today's Zacks #1 Rank stocks here.
Stocks to Consider
Investors may consider the following players from the same sector, as these have the right combination of elements to post an earnings beat this reporting cycle.
Nextpower Inc. NXT is likely to come up with an earnings beat when it reports fiscal first-quarter results on July 30. It has an Earnings ESP of +12.08% and a Zacks Rank of 1 at present.
NXT’s long-term (three to five years) earnings growth rate is 13.44%. The Zacks Consensus Estimate for earnings is pinned at $1.04 per share, indicating a year-over-year decrease of 10.3%.
Energy Transfer ET is likely to come up with an earnings beat when it reports second-quarter results on Aug. 4. It has an Earnings ESP of +26.17% and a Zacks Rank of 1 at present.
ET’s long-term earnings growth rate is 12.11%. The Zacks Consensus Estimate for earnings is pinned at 37 cents per unit, indicating a year-over-year increase of 15.6%.
Sempra SRE is likely to come up with an earnings beat when it reports second-quarter results on Aug. 6. It has an Earnings ESP of +0.79% and a Zacks Rank of 3 at present.
SRE’s long-term earnings growth rate is 8.13%. The Zacks Consensus Estimate for earnings is pinned at $1.01 per share, indicating a year-over-year increase of 13.5%.
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First Solar, Inc. (FSLR): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).