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Tempe, Arizona-based First Solar, Inc. (FSLR) is a solar technology company. Valued at a market cap of $19 billion, the company manufactures and sells photovoltaic (PV) solar modules with a thin film semiconductor technology that provides a lower-carbon alternative to conventional crystalline silicon PV solar modules. It also designs, manufactures, and sells cadmium telluride solar modules that convert sunlight into electricity. The company is scheduled to announce its fiscal Q2 earnings for 2025 on Tuesday, Jul. 29.
Prior to this event, analysts project this solar technology company to report a profit of $2.63 per share, down 19.1% from $3.25 per share in the year-ago quarter. The company has missed Wall Street’s bottom-line estimates in three of the last four quarters, while surpassing on another occasion. Its earnings of $1.95 per share in the previous quarter fell short of the consensus estimates by 22%.
For the full year, analysts expect First Solar to report EPS of $14.50, up 20.6% from $12.02 in fiscal 2024. Furthermore, its EPS is expected to grow 53.2% year-over-year to $22.21 in fiscal 2026.
First Solar has declined 20.3% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 11.9% return and the Technology Select Sector SPDR Fund’s (XLK) 9.5% uptick over the same time frame.
On Apr. 29, First Solar reported disappointing Q1 results, leading to an 8.3% drop in its share price in the following trading session. The company generated revenue of $844.6 million, marking a 6.4% increase from the prior-year quarter but falling slightly short of analyst expectations. Moreover, its net income declined 11.4% year-over-year to $1.95 per share and missed the consensus estimates by a significant 22%. Profitability was pressured by higher costs of sales and operating expenses, along with operational challenges stemming from a shifting geographic sales mix and ongoing changes in industry policies.
In addition, uncertainty surrounding evolving U.S. tariffs and their potential impact on customer demand and production planning led the company to sharply lower its fiscal 2025 guidance. It now expects net sales to be between $4.5 billion and $5.5 billion, and anticipates EPS in the range of $12.50 to $17.50.
Nonetheless, despite these short-term challenges tied to the new tariff environment, the company remains optimistic about the long-term growth prospects of the solar industry, particularly in its core U.S. market, and believes it is well-positioned to capitalize on future demand.
Wall Street analysts are highly optimistic about FSLR’s stock, with a "Strong Buy" rating overall. Among 30 analysts covering the stock, 24 recommend "Strong Buy," two indicate "Moderate Buy," three suggest "Hold,” and one advises a “Strong Sell” rating. The mean price target for FSLR is $203.01, which indicates a 14.7% potential upside from the current levels.
