First Solar Inc

First Solar, Inc. (NASDAQ: FSLR) is a solar technology company and global provider of photovoltaic cells (PV) solar energy solutions. The Company manufactures and sells PV solar modules with a semiconductor technology, which provides an alternative to conventional crystalline silicon PV solar modules. The Company operates through two segments: Modules Business and Other.

Recent Business and Financial Updates

• Financial Performance for Q2 2024: First Solar, Inc. reported net sales of USD 1.0 billion for the second quarter of 2024, an increase of USD 0.2 billion from the prior quarter. This rise was driven by higher module sales volumes and an elevated average selling price per watt. The company also recorded a net income per diluted share of USD 3.25, up from USD 2.20 in the first quarter of 2024.
• Cash Balance and Expenditures: The company's net cash balance, including cash, cash equivalents, restricted cash, restricted cash equivalents, and marketable securities less debt, decreased to USD 1.2 billion at the end of the second quarter, down from USD 1.4 billion at the end of the previous quarter. This reduction was primarily due to capital expenditures associated with new U.S. factories in Alabama and Louisiana and the repayment of working capital loans in India. This decrease was partially offset by increased operating cash flows from the modules business.
• 2024 Full-Year Guidance: First Solar has reaffirmed its full-year 2024 guidance. The guidance includes net sales projected to be between USD 4.4 billion and USD 4.6 billion, gross margin between USD 2.0 billion and USD 2.1 billion, and operating expenses ranging from USD 455 million to USD 485 million. Operating income is anticipated to be between USD 1.5 billion and USD 1.6 billion, with earnings per diluted share expected to range from USD 13.00 to USD 14.00. The net cash balance is forecasted to be between USD 0.6 billion and USD 0.9 billion, while capital expenditures are projected to be between USD 1.8 billion and USD 2.0 billion. The expected volume of modules sold is between 15.6 GW and 16.3 GW.
• Bookings and Sales Backlog: Year-to-date net bookings have totaled 3.6 GW, with 0.9 GW added since the first quarter earnings call. The average selling price was 31.6 cents per watt, excluding adjusters and domestic sales in India. The company anticipates a sales backlog of 75.9 GW.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 44.00, consolidating with the price inside an important range of USD 200-USD 240, with expectations of momentum in whichever direction the price breaks the consolidation range. Additionally, the stock's current positioning is below both 21-Day SMA and 50-Day SMA, which can act as a short to medium term resistance levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Watch’ rating has been given to First Solar, Inc. (NASDAQ: FSLR) at the closing market price of USD 215.99 as of July 31, 2024. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is July 31, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.s

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.