First Solar Keeps Sales Forecast Steady Despite Election Concerns

First Solar has announced impressive financial results for the second quarter, reporting revenues of $1.01 billion, surpassing Wall Street's expectations of $941.5 million. The company's net income more than doubled to $349.4 million, or $3.25 per share, compared to $171 million, or $1.59 per share, from the previous year. Despite these positive figures, CEO Mark Widmar expressed concerns regarding the potential impact of the upcoming U.S. presidential election on the solar industry, particularly regarding access to capital. Widmar highlighted that the possibility of a Republican sweep in the election has raised apprehensions about the future of tax credits under the Inflation Reduction Act. This uncertainty is causing investors to hesitate in making decisions, as they await clarity on future policies. Additionally, developers are reassessing the risk and return of their projects, with some traditional energy companies contemplating a shift back to fossil fuels. Looking ahead, First Solar has maintained its 2024 forecast, projecting earnings between $13.00 and $14.00 per share, with revenues expected to range from $4.4 billion to $4.6 billion. The company anticipates selling between 15.6 and 16.3 gigawatts of solar power and expects to have net cash between $600 million and $900 million. With 3.6 gigawatts in net bookings for 2024 and a backlog of 75.9 gigawatts extending through 2030, First Solar is well-positioned to meet the anticipated surge in power demand. Despite the political landscape, Widmar remains optimistic about the utility-scale demand for renewables, citing factors such as the growth of data centers, reshoring of manufacturing, and cryptocurrency mining as key drivers. He emphasized that solar energy continues to be the most cost-effective energy source in many regions across the U.S.