FSLR - First Solar powers higher as sunny guidance shows IRA's 'dramatic' impact

First Solar ( NASDAQ: FSLR ) +15.2% in Wednesday's trading after posting a smaller than expected Q4 loss and issuing upside guidance for 2023 of earnings of $7.00-$8.00/share on revenues of $3.4B-$3.6B.

First Solar ( FSLR ) forecast FY 2023 operating income of $745M-$870M, while analysts saw ~$700M, as the company expects to receive $660M-$710M in Inflation Reduction Act tax credits.

Guggenheim analysts led by Joseph Osha reiterated their Buy rating, saying the company's earnings underscored its status as potentially the biggest U.S. beneficiary of the IRA .

The impact of the tax credits is "dramatic," Osha wrote, lifting First Solar's ( FSLR ) overall gross margin to 37% in 2023 and 45% in 2024 from just 3% last year, which should boost annual EBITDA to $3.1B by 2025, which is more than the company's revenue last year.

Reiterating its Buy recommendation , Goldman Sachs' Brian Lee said the results indicate growing visibility toward $20 of EPS by 2025.

"Bookings and ASP trends remained solid as well and FSLR is now sold out through 2025 and booking well into the secnd half of the decade," according to Lee.

KeyBanc's Sophie Karp also reiterated her Buy rating, as "strong 2023 guidance highlights ongoing operational momentum and margin expansion trajectory."

"Given the strong margin momentum, growth trajectory, and remaining IRA-related upside, we believe the shares will react positively," Karp said.

First Solar ( FSLR ) earnings are growing faster than expected, Michael Wiggins de Oliveira writes in an analysis newly published on Seeking Alpha .

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