First Solar's stock fell on Wednesday after investors reacted to the "significant challenges" that CEO Mark Widmar said President Donald Trump’s tariffs presented to the solar module maker. The company’s shares fell over 7.5% on Wednesday, the day after First Solar released its first-quarter financial results and held its earnings call to discuss them. Widmar told analysts and investors on the call that the Trump administration’s tariffs "introduced significant challenges to 2025 that were not known at the ...

First Solar Inc. (FSLR) ended first-quarter 2025 on a dismal note, with both its earnings and sales falling short of their respective Zacks Consensus Estimate. Its earnings also performed poorly on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) The company has lowered its sales guidance for 2025, taking into account the expected impact of the new reciprocal tariffs implemented in April 2025 by the U.S. government, particularly on India, Malaysia and Vietnam ...

First Solar, Inc. (FSLR) reported first-quarter 2025 earnings of $1.95 per share, which were down 11.4% from the prior-year quarter’s figure of $2.20. The bottom line also missed the Zacks Consensus Estimate of $2.50 per share by 22%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The year-over-year decline in the bottom line can be attributed to higher cost of sales and total operating expenses from the prior-year quarter.FSLR’s Sales UpdateFirst Solar’s first-quarter net sales we ...

Renewable energy stock First Solar Inc (NASDAQ:FSLR) is down 9.7% at $123.90 at last glance, after the company posted a first-quarter earnings and revenue miss and lowered its annual sales and profit outlook. CEO Mark Widmar said tariffs create an unexpected and "significant economic headwind." Oppenheimer downgraded First Solar stock to "perform" from "outperform" after today's events, while Keybanc cut its rating to "underweight" from "sector weight." Plenty of other analysts slashed their price targets a ...

Financial Data and Key Metrics Changes - Q1 earnings per diluted share were $1.95, below the low end of guidance, primarily due to a higher proportion of international sales compared to U.S. sales [5][39] - Gross margin increased to 41% in Q1 from 37% in the prior quarter, driven by a higher mix of U.S. manufactured modules qualifying for Section 45X tax credits [40] - Total cash and marketable securities decreased to $900 million at the end of Q1, reflecting a decrease of $900 million from year-end [44] Business Line Data and Key Metrics Changes - The company secured net bookings of 0.6 gigawatts at a base ASP of $0.305 per watt, resulting in a contracted backlog of 66.3 gigawatts [4][35] - Q1 module sales were 2.9 gigawatts, with 1.75 gigawatts being domestically produced [39] - Approximately 32.5 gigawatts of contracted volume includes potential adjustments that could generate additional revenue of up to $600 million [36] Market Data and Key Metrics Changes - The mid to late stage bookings opportunities increased to 23.7 gigawatts, driven by demand in India from the PM Kusum initiative [37][38] - The company anticipates a shift in production from exports to the U.S. to the domestic Indian market due to new tariffs [15][55] Company Strategy and Development Direction - The company is focused on leveraging its unique profile as the only U.S. headquartered PV manufacturer of scale with a fully vertically integrated manufacturing presence [19][34] - The company plans to pivot its India facility to produce more for the domestic market in response to tariff impacts [15][55] - The company continues to advocate for maintaining key tax policies and strengthening domestic content provisions to support U.S. manufacturing [24][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term prospects for solar demand in the U.S., despite near-term challenges from the new tariff regime [17][33] - The company highlighted the importance of a level playing field in trade practices to ensure the sustainability of U.S. solar manufacturing [20][22] - Management noted that the uncertainty surrounding tariffs and policy changes could impact project costs and financing, leading to potential delays in shipments [50][51] Other Important Information - The company is facing challenges related to increased capital expenditure costs and production costs due to the new tariff regime [49][50] - The company has approximately 13.9 gigawatts of forward contracts for international product delivery to the U.S., with potential tariff-related risks [13][35] Q&A Session Summary Question: Outlook for bookings and impact of tariffs - Management noted increased customer engagement and momentum for bookings, but uncertainty remains regarding pricing dynamics due to tariffs and policy changes [66][70] Question: Underperformance of modules - Management confirmed that third-party reports validated root causes of production issues and corrective actions have been implemented [66][70]

First Solar Q1'25 Earnings Call April 29, 2025 | Important Information Cautionary Note Regarding Forward Looking Statements This presentation contains forward-looking statements which are made pursuant to safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in this presentation, other than statements of historical fact, are forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning: demand for solar technology ...

Core Viewpoint - First Solar reported quarterly earnings of $1.95 per share, missing the Zacks Consensus Estimate of $2.50 per share, representing a -22% earnings surprise [1] - The company posted revenues of $844.57 million for the quarter, slightly missing the consensus estimate by 0.73% [2] Financial Performance - Earnings per share decreased from $2.20 a year ago to $1.95 this quarter [1] - Revenue increased from $794.11 million in the same quarter last year to $844.57 million [2] - Over the last four quarters, First Solar has surpassed consensus EPS estimates only once [2] Stock Performance - First Solar shares have declined approximately 20.2% since the beginning of the year, compared to a -6% decline in the S&P 500 [3] - The current Zacks Rank for First Solar is 3 (Hold), indicating expected performance in line with the market [6] Future Outlook - The consensus EPS estimate for the upcoming quarter is $4.19, with expected revenues of $1.24 billion [7] - For the current fiscal year, the consensus EPS estimate is $18.22 on revenues of $5.48 billion [7] - The solar industry is currently ranked in the bottom 23% of Zacks industries, which may impact stock performance [8]

Financial Performance - Net sales for Q1 2025 increased by 6% to $844.6 million compared to $794.1 million in Q1 2024, driven by an 8.0% increase in module sales volume [112]. - Net sales for the three months ended March 31, 2025, were $844.6 million, a 6.4% increase from $794.1 million in the same period of 2024, primarily due to an 8.0% increase in the volume of modules sold [133]. - Gross profit for the three months ended March 31, 2025, decreased by $1.6 million, or 0.5%, to $344.4 million, with a gross profit margin of 40.8%, down from 43.6% in 2024 [137]. - Selling, general and administrative expenses rose by $7.3 million, or 16.0%, to $53.2 million, accounting for 6.3% of net sales [139]. - Research and development expenses increased by $9.6 million, or 22.6%, to $52.4 million, representing 6.2% of net sales [142]. - The cost of sales as a percentage of net sales increased to 59.2% in Q1 2025 from 56.4% in Q1 2024, resulting in a gross profit margin decrease from 43.6% to 40.8% [130]. - Cost of sales for the three months ended March 31, 2025, increased by $52.1 million, or 11.6%, to $500.2 million compared to $448.1 million in 2024, representing 59.2% of net sales [135]. - The increase in cost of sales was primarily driven by higher sales freight and production costs, partially offset by advanced manufacturing production credits reducing costs by $106.8 million [135]. - Interest income decreased by $8.4 million, or 30.8%, to $18.9 million due to lower yields and balances of marketable securities [149]. - Income tax expense decreased by $11.4 million, or 60.2%, to $(7.5) million, with an effective tax rate of 3.5% compared to 7.4% in 2024 [155]. Production and Capacity - Total installed nameplate production capacity is approximately 21 GW, with 4.0 GW produced and 2.9 GW sold during Q1 2025 [112]. - The company expects to achieve an annual manufacturing capacity of over 25 GW by 2026, with the fifth manufacturing facility in the U.S. expected to commence operations in the second half of 2025 [110]. - The company is expanding its manufacturing capacity by approximately 4 GW, including the construction of a fifth manufacturing facility in the United States [129]. - The company commenced operations at its fourth manufacturing facility in the U.S. and is constructing a fifth facility, with an expected investment of approximately $0.6 billion throughout 2025 and 2026 [164]. Product Development and Innovation - The company sold its first CuRe modules during Q1 2025, with a new world record CdTe research cell conversion efficiency of 23.1% achieved in May 2024 [118]. - The company has commenced production of bifacial solar modules and delivered the first units to customers, which may lower the overall levelized cost of electricity [118]. - The company continues to focus on R&D, including the development of perovskite technology to enhance module efficiency and stability [118]. Market and Competitive Landscape - The solar industry is experiencing intense pricing competition, but module pricing in the U.S. remains stable due to rising demand for domestically manufactured modules [116]. - The U.S. President imposed a 10% reciprocal tariff on nearly all U.S. trading partners, with additional tariffs on specific countries, which may impact the competitive landscape and demand for solar modules [125]. - The Approved List of Models and Manufacturers in India may affect future investments in solar module manufacturing, requiring projects to use domestically manufactured solar cells starting June 2026 [126]. Financial Agreements and Incentives - The company entered into agreements with Visa for the sale of $857.2 million in Section 45X tax credits, generating cash proceeds of $818.6 million [112]. - The company expects to qualify for the advanced manufacturing production credit under Section 45X of the IRA, which will favorably impact its results of operations in future periods [124]. - The company expects to qualify for a credit of approximately $0.17 per watt for each solar module produced in the U.S. and sold to a third party under the advanced manufacturing production credit, which is anticipated to provide significant funding throughout its 10-year period [163]. Cash Flow and Investments - As of March 31, 2025, the company had $0.9 billion in cash, cash equivalents, and marketable securities, down from $1.8 billion as of December 31, 2024, primarily due to lower cash receipts from module sales and increased payments to suppliers [161]. - The net cash used in operating activities for the three months ended March 31, 2025, was $(607,982) thousand, compared to $267,723 thousand for the same period in 2024 [169]. - The net cash used in investing activities decreased to $(88,209) thousand for the three months ended March 31, 2025, from $(568,628) thousand in the prior period [171]. - The increase in net cash used in financing activities was primarily due to debt repayment during the current period [172]. - The company has committed $210.6 million in restricted marketable securities and $2.8 million in restricted cash for solar module collection and recycling obligations [167]. Logistics and Supply Chain - The company monitors logistics costs and employs contract structures to mitigate logistics expenses associated with raw material procurement and module distribution [126]. - The company has entered into long-term supply agreements for substrate glass, with termination penalties totaling up to $343.4 million as of March 31, 2025 [166]. Accounting and Compliance - The company is currently evaluating the impact of recent accounting standards updates on its consolidated financial statements and disclosures [158]. - The company maintains the intent to permanently reinvest accumulated earnings outside the U.S., with potential reevaluation based on future circumstances [162].

Financial Performance - Net sales for Q1 2025 were $0.8 billion, a decrease of $0.7 billion from the previous quarter, primarily due to seasonal reduction in module sales[2] - Net income per diluted share for Q1 2025 was $1.95, down from $3.65 in Q4 2024[2] - Net sales for Q1 2025 were $844.6 million, a decrease of 44.2% from $1.5 billion in Q4 2024 and an increase of 6.4% from $794.1 million in Q1 2024[17] - Gross profit for Q1 2025 was $344.4 million, down 39.4% from $567.7 million in Q4 2024 and slightly down from $346.0 million in Q1 2024[17] - Operating income for Q1 2025 was $221.2 million, a decrease of 51.6% from $456.8 million in Q4 2024 and a decrease of 9.0% from $243.1 million in Q1 2024[17] - Net income for Q1 2025 was $209.5 million, down 46.6% from $393.1 million in Q4 2024 and down 11.4% from $236.6 million in Q1 2024[17] - Basic net income per share for Q1 2025 was $1.96, compared to $3.67 in Q4 2024 and $2.21 in Q1 2024[17] Cash Flow and Expenditures - Cash and cash equivalents decreased to $0.4 billion from $1.2 billion at year-end 2024, driven by capital expenditures and reduced operating cash flows[3] - Cash flows from operating activities for Q1 2025 showed a net cash outflow of $608.0 million, compared to a cash inflow of $267.7 million in Q1 2024[20] - Cash, cash equivalents, restricted cash, and restricted cash equivalents at the end of Q1 2025 were $844.0 million, down from $1.7 billion at the end of Q1 2024[20] - The company incurred $205.9 million in capital expenditures during Q1 2025, a decrease from $413.5 million in Q4 2024[20] Guidance and Forecast - Revised 2025 guidance for net sales is now $4.5 billion to $5.5 billion, down from the previous range of $5.3 billion to $5.8 billion[6] - Revised earnings per diluted share guidance is now $12.50 to $17.50, down from $17.00 to $20.00[6] - The forecasted second quarter earnings per diluted share is expected to be between $2.00 and $3.00[6] - The company anticipates module sales between 3.0 GW and 3.9 GW for the second quarter[6] - Year-to-date net bookings reached 0.7 GW, with an average selling price of 30.5 cents per watt, excluding adjusters and India domestic sales[5] - The expected sales backlog is 66.3 GW[5] Market Outlook - First Solar remains optimistic about long-term solar demand in the U.S. market despite near-term challenges from new tariffs[4] Operating Expenses - Total operating expenses for Q1 2025 were $123.2 million, an increase of 11.0% from $110.9 million in Q4 2024 and an increase of 18.5% from $104.0 million in Q1 2024[17] Foreign Currency Impact - The company reported a foreign currency loss of $11.6 million in Q1 2025, compared to a loss of $7.3 million in Q4 2024 and a loss of $2.9 million in Q1 2024[17]

Core Viewpoint - First Solar (NASDAQ: FSLR) has experienced a significant stock rally of 13.02% over the past 30 days, reaching a price of $142.89, breaking its previous downtrend and outperforming the broader market [1][3]. Group 1: Stock Performance - FSLR stock has rebounded from a downtrend that saw an 18.93% decline since the start of 2025, while the Nasdaq 100 index only increased by 0.78% in the same period [3]. - The stock's recent performance is attributed to two main catalysts: high tariffs on foreign solar companies and an upcoming earnings report [4]. Group 2: Tariffs and Earnings Report - Proposed tariffs on foreign solar companies could reach as high as 3,500%, potentially allowing American firms like First Solar to recover market share lost to Chinese competitors [4]. - The upcoming earnings report, scheduled for April 29, is anticipated to further support the stock's upward momentum [5]. Group 3: Analyst Ratings and Forecasts - Wall Street analysts overwhelmingly rate FSLR stock as a buy, with an average expected rally of 60.31% to a price target of $227.41 within the next 12 months [6]. - The lowest forecast anticipates a 2.21% increase to $145, while the highest predicts a 114.30% surge to $304 [6]. - Out of 38 analysts, 32 recommend a 'buy' or 'strong buy', with no analysts suggesting a sell [7]. Group 4: Recent Analyst Revisions - Recent analyst revisions have seen price target downgrades, yet all maintained 'buy' ratings for FSLR [11]. - Specific downgrades include RBC lowering its forecast from $251 to $237, and UBS from $285 to $240 [11]. - Other notable revisions include Piper Sandler reducing its target from $230 to $205, and Morgan Stanley from $238 to $223 [12].