First Solar Reports Earnings, Misses Expectations

First Solar (NASDAQ:FSLR) released its quarterly earnings results on Tuesday. The solar cell manufacturer reported earnings per share (EPS) of $3.65 for the quarter, which fell short of the consensus estimate of $4.81 by $1.16, according to reports from Zacks. The company noted a return on equity of 17.56% and a net margin of 32.41%. In addition, First Solar revised its fiscal year 2025 guidance, now predicting EPS between 17.000 and 20.000.

Stock Performance

On Tuesday, shares of First Solar traded down by 3.6%, decreasing by $5.45 to a price of $147.46. During the trading session, approximately 4,684,838 shares exchanged hands, compared to the average trading volume of 2,313,416 shares. The company's market capitalization stands at $15.79 billion, with a price-to-earnings (P/E) ratio of 12.70 and a price-to-earnings growth (PEG) ratio of 0.19. The stock has seen a 1-year low of $141.76 and a high of $306.77. Furthermore, First Solar maintains a current ratio of 2.14, a quick ratio of 1.44, and a low debt-to-equity ratio of 0.05. The fifty-day moving average for the stock is $175.36, while the two-hundred day moving average is $199.83.

Analyst Ratings

First Solar has recently been the focus of various research reports. Bank of America, in a report on January 28th, lowered its price target for First Solar from $246.00 to $236.00 and maintained a "buy" rating. BMO Capital Markets reiterated an "outperform" rating, setting a target price of $260.00, which was down from $286.00, in their report dated October 30th. Additionally, Janney Montgomery Scott upgraded First Solar from a "neutral" to a "buy" rating, assigning a target price of $260.00 on October 29th. Barclays also adjusted their price target for First Solar from $275.00 to $273.00 while maintaining an "overweight" rating. Seaport Res Ptn raised their rating from "hold" to "strong-buy" on January 15th. Currently, two analysts have rated the stock as a hold, twenty-four have given it a buy, and two have categorized it as a strong buy. MarketBeat reports that the average rating for the stock is "Buy," with an average target price of $276.38.

Company Overview

First Solar, Inc. is a prominent solar technology company that specializes in providing photovoltaic (PV) solar energy solutions across the United States, Europe, Japan, and Chile. The firm manufactures and sells PV solar modules using thin-film semiconductor technology, offering a more sustainable alternative to traditional crystalline silicon PV solar modules.

Investment Consideration

Investors considering First Solar should weigh the recent earnings miss against analyst sentiment and the overall market conditions. While the company currently holds a "Buy" rating, analysts have pointed to other stocks as potentially more attractive buys at this time.

FirstSolar, Earnings, Stocks