Shares of First Solar (NASDAQ: FSLR) tumbled 11.92% in pre-market trading on Wednesday following the company's disappointing first-quarter earnings report and significantly lowered full-year guidance. The solar panel manufacturer cited the impact of new tariffs as a key factor in its revised outlook.

First Solar reported first-quarter earnings of $1.95 per share, falling short of analyst estimates of $2.63. While quarterly revenue of $844.57 million slightly exceeded expectations, the company's forward-looking projections sparked investor concerns. First Solar slashed its 2025 sales forecast to a range of $4.5 billion to $5.5 billion, down from the previous guidance of $5.3 billion to $5.8 billion. Additionally, the company reduced its full-year earnings per share outlook to between $12.50 and $17.50, compared to the earlier projection of $17 to $20 per share.

CEO Mark Widmar addressed the challenges, stating, "Despite the near-term challenges presented by the new tariff regime, we believe that the long-term outlook for solar demand, particularly in our core U.S. market, remains strong." The company is reevaluating its production volumes in Malaysia and Vietnam due to expectations of high tariffs on solar products from these countries. First Solar plans to redirect its Indian supply to the domestic market in India and may potentially idle its factories in Malaysia and Vietnam.