First Solar Shares Fall 6% as Q3 Earnings Miss Estimates and Full-Year Guidance is Lowered

• Jefferies maintains a "Hold" rating for First Solar Inc. (NASDAQ:FSLR) with a raised price target amidst solar industry challenges.
• The new House tax bill introduces provisions that could negatively impact the solar industry, affecting companies like First Solar.
• Legislation aiming to lower taxes and increase military spending could end several green-energy subsidies, leading to a decline in solar stocks.

First Solar Inc. (NASDAQ:FSLR) is a prominent player in the solar energy sector, specializing in the design and manufacture of solar panels and systems. The company is known for its advanced thin-film photovoltaic technology, which is used in large-scale solar power projects. First Solar competes with other solar companies like Enphase Energy and SolarEdge, which focus on solar inverters and energy management solutions.

On May 22, 2025, Jefferies maintained its "Hold" rating for First Solar, with the stock priced at $156.35. Jefferies also raised its price target from $127 to $157. This decision comes amid significant challenges in the solar industry, particularly due to a new House tax bill. The bill introduces stringent provisions that could impact the growth and financial performance of companies like First Solar.

The recent House tax bill has introduced challenges for the rooftop solar industry, affecting companies like First Solar. The bill sunsets renewable energy credits and incorporates more stringent provisions, which could be detrimental to the sector. As a result, First Solar's stock price decreased by 4%, trading at $156.82, as highlighted by Schaeffer's Research.

The bill aims to lower taxes and increase military spending, potentially ending several green-energy subsidies. This has led to a significant decline in solar stocks, with First Solar experiencing a 4.30% decrease. The stock has traded between $152.72 and $160.97 today, with a market capitalization of approximately $16.77 billion.

The legislation is described as "disastrous" for the rooftop solar industry by Guggenheim, as it eliminates crucial clean energy credits. This has led to a premarket plunge in solar stocks, with companies like Sunrun and Enphase Energy experiencing significant declines. The bill also terminates investment and electricity production credits for clean energy facilities, which have been vital for the sector's growth.

• The consensus price target for First Solar, Inc. (NASDAQ:FSLR) has been on a downward trend, indicating analysts' growing caution.
• Recent policies and market conditions have introduced uncertainty in the solar industry, impacting companies like First Solar.
• Despite challenges, First Solar's strong financial fundamentals and market position suggest it is undervalued, presenting a buying opportunity.

First Solar, Inc. (NASDAQ:FSLR) is a key player in the photovoltaic solar energy solutions industry, known for its expertise in designing, manufacturing, and selling cadmium telluride solar modules. These modules are crucial for converting sunlight into electricity. The company caters to a wide range of clients, including developers, utilities, and commercial entities, making it a significant entity in the renewable energy sector.

The consensus price target for First Solar has shown a downward trend over the past year. A year ago, the average price target was $272.14, which decreased to $234.50 last quarter, and further to $224.33 last month. This decline suggests that analysts are becoming more cautious about the company's stock performance, possibly due to market conditions or company-specific challenges.

Recent developments have influenced these price target changes. Analyst Moses Sutton from Barclays has set a notably lower price target of $112 for First Solar, reflecting current market conditions and potential challenges. The solar industry is facing uncertainty due to policies introduced by former President Trump, affecting companies like First Solar, Enphase, and Sunrun. These policies, along with concerns about tariffs and the Inflation Reduction Act, are impacting the sector.

Despite these challenges, First Solar remains a strong player in the U.S. market, supported by incentives from the Inflation Reduction Act and protective tariffs. However, the company is dealing with operational challenges and geopolitical risks that are affecting its earnings. These issues are impacting First Solar's margins and production flexibility, leading to earnings volatility. Analyst Moses Sutton maintains a buy rating on the company, citing its strong market position and valuation.

First Solar is considered undervalued, presenting a potential buying opportunity for long-term investors. The company's price-to-earnings (P/E) ratio is 10.71, and its enterprise value to EBITDA (EV/EBITDA) ratio is 6.99. Despite recent stock performance challenges, First Solar demonstrates strong financial fundamentals, with a gross profit margin of 44.17% and a return on equity (ROE) of 17.62%. Analyst Moses Sutton's price target of $112 reflects confidence in First Solar's long-term potential.

• The consensus price target for First Solar, Inc. (NASDAQ:FSLR) has been on a downward trend, indicating analysts' growing caution.
• Recent policies and market conditions have introduced uncertainty in the solar industry, impacting companies like First Solar.
• Despite challenges, First Solar's strong financial fundamentals and market position suggest it is undervalued, presenting a buying opportunity.

First Solar, Inc. (NASDAQ:FSLR) is a key player in the photovoltaic solar energy solutions industry, known for its expertise in designing, manufacturing, and selling cadmium telluride solar modules. These modules are crucial for converting sunlight into electricity. The company caters to a wide range of clients, including developers, utilities, and commercial entities, making it a significant entity in the renewable energy sector.

The consensus price target for First Solar has shown a downward trend over the past year. A year ago, the average price target was $272.14, which decreased to $234.50 last quarter, and further to $224.33 last month. This decline suggests that analysts are becoming more cautious about the company's stock performance, possibly due to market conditions or company-specific challenges.

Recent developments have influenced these price target changes. Analyst Moses Sutton from Barclays has set a notably lower price target of $112 for First Solar, reflecting current market conditions and potential challenges. The solar industry is facing uncertainty due to policies introduced by former President Trump, affecting companies like First Solar, Enphase, and Sunrun. These policies, along with concerns about tariffs and the Inflation Reduction Act, are impacting the sector.

Despite these challenges, First Solar remains a strong player in the U.S. market, supported by incentives from the Inflation Reduction Act and protective tariffs. However, the company is dealing with operational challenges and geopolitical risks that are affecting its earnings. These issues are impacting First Solar's margins and production flexibility, leading to earnings volatility. Analyst Moses Sutton maintains a buy rating on the company, citing its strong market position and valuation.

First Solar is considered undervalued, presenting a potential buying opportunity for long-term investors. The company's price-to-earnings (P/E) ratio is 10.71, and its enterprise value to EBITDA (EV/EBITDA) ratio is 6.99. Despite recent stock performance challenges, First Solar demonstrates strong financial fundamentals, with a gross profit margin of 44.17% and a return on equity (ROE) of 17.62%. Analyst Moses Sutton's price target of $112 reflects confidence in First Solar's long-term potential.

First Solar (NASDAQ:FSLR) fell short of Wall Street earnings expectations for the fourth quarter, but its revenue came in stronger than anticipated, offering investors a mixed but cautiously optimistic outlook. Despite the earnings miss, shares surged around 10% intra-day today.

For the quarter, the solar panel manufacturer reported earnings per share of $3.65, well below the $4.83 analyst consensus. However, revenue reached $1.5 billion, slightly topping the projected $1.49 billion, signaling resilient demand despite industry headwinds.

Looking ahead to 2025, First Solar provided a wide earnings forecast of $17.00 to $20.00 per share, compared to the $20.17 consensus estimate. The company also expects full-year revenue between $5.3 billion and $5.8 billion, compared to the $5.52 billion analyst forecast.

The company cited policy uncertainty and challenges in reallocating or replacing canceled deliveries as factors behind the broad earnings range for the year, adding that performance is expected to be more heavily weighted toward the second half of 2025.

While the Q4 earnings miss raised some concerns, strong revenue and an overall stable outlook have helped keep investor sentiment steady, reinforcing First Solar’s positioning in a volatile but growing renewable energy market.

First Solar (NASDAQ:FSLR) fell short of Wall Street earnings expectations for the fourth quarter, but its revenue came in stronger than anticipated, offering investors a mixed but cautiously optimistic outlook. Despite the earnings miss, shares surged around 10% intra-day today.

For the quarter, the solar panel manufacturer reported earnings per share of $3.65, well below the $4.83 analyst consensus. However, revenue reached $1.5 billion, slightly topping the projected $1.49 billion, signaling resilient demand despite industry headwinds.

Looking ahead to 2025, First Solar provided a wide earnings forecast of $17.00 to $20.00 per share, compared to the $20.17 consensus estimate. The company also expects full-year revenue between $5.3 billion and $5.8 billion, compared to the $5.52 billion analyst forecast.

The company cited policy uncertainty and challenges in reallocating or replacing canceled deliveries as factors behind the broad earnings range for the year, adding that performance is expected to be more heavily weighted toward the second half of 2025.

While the Q4 earnings miss raised some concerns, strong revenue and an overall stable outlook have helped keep investor sentiment steady, reinforcing First Solar’s positioning in a volatile but growing renewable energy market.

• BMO Capital upgrades First Solar (NASDAQ:FSLR) to "Outperform" with a stock price of $182.10.
• First Solar establishes the Endowed Professorship in Critical Energy Materials at Missouri University of Science and Technology.
• The stock experiences a decrease of 5.94%, trading between $180.59 and $192.15 with a market capitalization of approximately $19.42 billion.

On January 21, 2025, BMO Capital updated its rating for First Solar (NASDAQ:FSLR) to "Outperform," with the stock priced at $182.10. First Solar is a leading American company in photovoltaic solar technology and manufacturing. It stands out as the only U.S.-headquartered manufacturer among the world's largest solar panel producers, playing a crucial role in the solar industry.

First Solar has taken a significant step to support the securement of critical materials supply chains. The company established the Endowed Professorship in Critical Energy Materials at Missouri University of Science and Technology. This initiative highlights First Solar's commitment to advancing research and development in critical energy materials, essential for solar panel production.

Despite the positive rating from BMO Capital, First Solar's stock price has decreased by 5.94%, or $11.47, to $181.42. The stock has traded between $180.59 and $192.15 today. Over the past year, it reached a high of $306.77 and a low of $135.88, indicating significant volatility in its market performance.

First Solar's market capitalization is approximately $19.42 billion, reflecting its substantial presence in the solar industry. The trading volume for the day is 1,414,340 shares on the NASDAQ exchange, showing active investor interest. This trading activity suggests that investors are closely monitoring the company's developments and market performance.

• BMO Capital upgrades First Solar (NASDAQ:FSLR) to "Outperform" with a stock price of $182.10.
• First Solar establishes the Endowed Professorship in Critical Energy Materials at Missouri University of Science and Technology.
• The stock experiences a decrease of 5.94%, trading between $180.59 and $192.15 with a market capitalization of approximately $19.42 billion.

On January 21, 2025, BMO Capital updated its rating for First Solar (NASDAQ:FSLR) to "Outperform," with the stock priced at $182.10. First Solar is a leading American company in photovoltaic solar technology and manufacturing. It stands out as the only U.S.-headquartered manufacturer among the world's largest solar panel producers, playing a crucial role in the solar industry.

First Solar has taken a significant step to support the securement of critical materials supply chains. The company established the Endowed Professorship in Critical Energy Materials at Missouri University of Science and Technology. This initiative highlights First Solar's commitment to advancing research and development in critical energy materials, essential for solar panel production.

Despite the positive rating from BMO Capital, First Solar's stock price has decreased by 5.94%, or $11.47, to $181.42. The stock has traded between $180.59 and $192.15 today. Over the past year, it reached a high of $306.77 and a low of $135.88, indicating significant volatility in its market performance.

First Solar's market capitalization is approximately $19.42 billion, reflecting its substantial presence in the solar industry. The trading volume for the day is 1,414,340 shares on the NASDAQ exchange, showing active investor interest. This trading activity suggests that investors are closely monitoring the company's developments and market performance.