First Solar Shares Tumble on Weak Q1 Earnings, Trims 2025 Outlook

GuruFocus
30 Apr

First Solar (FSLR, Financial) shares dropped 10% in early trading on Wednesday after the solar panel maker posted weaker-than-expected Q1 results and cut its full-year earnings outlook, citing the impact of new U.S. trade tariffs.

The company reported adjusted earnings of $1.95 per share for the first quarter, down from $3.65 in the previous quarter and well below Wall Street's forecast of $2.48.

First Solar now expects fiscal 2025 earnings in the range of $12.50 to $17.50, compared with a prior estimate of $17.00 to $20.00. The revised forecast also missed the analyst consensus of $17.77.

Revenue guidance was lowered to $4.5 billion to $5.5 billion from an earlier range of $5.3 billion to $5.8 billion. The midpoint of the new outlook also falls short of the $5.46 billion analysts had projected.

The company pointed to the anticipated drag from recently enacted tariffs on solar imports, which it expects will weigh on margins and order volumes through the rest of the year.

Is FSLR Stock a Buy now?

According to the assessments provided by 33 financial analysts, the average one-year price target for First Solar is set at $224. The estimates range with a high of $304 and a low forecast of $100. This average target predicts a potential increase of 63% from the current trading price of $137.2. Investors can access more comprehensive estimate data on the First Solar Inc (FSLR, Financial) Forecast page.

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