Core Viewpoint - First Solar Inc. reported disappointing first-quarter earnings and lowered its 2025 revenue guidance, but is expected to outperform peers according to GLJ Research [1][2]. Group 1: Earnings and Guidance - First Solar's management reduced their 2025E revenue guidance from $5.3-$5.8 billion to $4.5-$5.5 billion and adjusted earnings guidance from $12.50-$17.50 per share to $17.00-$20.00 per share [2]. - The low-end of the guidance is considered conservative and assumes significant risks, including potential contract cancellations due to resumed tariffs [2]. Group 2: Analyst Ratings and Market Reaction - Analyst Gordon Johnson upgraded First Solar's rating from Hold to Buy and raised the price target to $172.37 [1]. - Following the earnings report, shares of First Solar rose by 1.48% to $127.68 [3]. Group 3: Future Outlook - Further downward revisions to guidance are considered unlikely, despite uncertainties surrounding the Trump administration's policies [3]. - The production-tax credits (PTC) are expected to remain largely intact, which may support the company's performance [3].

Core Viewpoint - First Solar's stock declined over 7.5% following CEO Mark Widmar's comments on the significant challenges posed by President Trump's tariffs on the solar module manufacturer [1][5]. Group 1: Tariff Impact - The tariffs introduced by the Trump administration have created "significant challenges" for First Solar, particularly affecting its manufacturing facilities in India, Malaysia, and Vietnam [3][5]. - The initial 10% levy on imports and subsequent 90-day pause on reciprocal tariffs have partially mitigated impacts, but the lower rate still poses a meaningful adverse gross margin impact on sales to the U.S. market [5][6]. - There is uncertainty regarding future tariff rates after the 90-day pause, complicating the company's ability to quantify the impact on module shipments for the second half of the year [6]. Group 2: Production and Market Strategy - First Solar is considering reducing or idling production at its Malaysian and Vietnamese facilities due to potentially decreased U.S. demand for non-domestic products [7]. - The company plans to shift focus from exports to the U.S. from its Indian manufacturing site towards the domestic market in India [6]. - Despite current challenges, First Solar maintains a strong long-term outlook for solar demand in the U.S. market and believes it is well-positioned to capitalize on this demand [7][8]. Group 3: Financial Performance and Guidance - In its first-quarter earnings release, First Solar projected net sales for 2025 to be between $4.5 billion and $5.5 billion, a decrease from previous guidance of $5.3 billion to $5.8 billion [9]. - The company also revised its annual earnings per diluted share forecast to a range of $12.50 to $17.50, down from $17.00 to $20.00 [9][11]. - First Solar reported nearly $844.6 million in net sales and a net income of $209.5 million for the first three months of 2025 [11].

Core Viewpoint - First Solar Inc. (FSLR) reported disappointing earnings and sales for Q1 2025, falling short of Zacks Consensus Estimates, and has lowered its sales guidance for 2025 due to new tariffs impacting its manufacturing locations [1][2] Financial Performance - FSLR's shares have decreased by 22.7% over the past year, outperforming the Zacks solar industry's decline of 40.3%, but underperforming the broader Zacks Oil-Energy sector's decline of 9.2% and the S&P 500's return of 10.3% [3] - The Zacks Consensus Estimate for Q2 2025 revenues and earnings indicates a solid improvement of 22.4% and 28.9% year-over-year, respectively [12] - Current estimates for FSLR's sales and earnings for 2025 are $5.48 billion and $18.22, reflecting a year-over-year growth of 30.33% and 51.58%, respectively [13][14] Manufacturing and Capacity Expansion - FSLR is expanding its manufacturing capacity by approximately 4 GW, including the construction of a fifth U.S. manufacturing facility expected to commence operations in the second half of 2025 [8][10] - The company has recently started operations at its fourth manufacturing facility in the U.S. and expanded existing facilities in Ohio and India [7] Market Sentiment and Challenges - Manufacturing issues with certain Series 7 modules produced in 2023 and 2024 may lead to premature power loss, negatively impacting market sentiment [6] - The rapid expansion of manufacturing capacity by competitors in China and Southeast Asia has created a supply-demand imbalance, affecting FSLR's operating results [5] Valuation - FSLR's forward 12-month price-to-sales (P/S) ratio is 2.52X, which is a premium compared to its peer group's average of 0.71X, indicating that investors are paying a higher price relative to expected sales growth [15]

Core Insights - First Solar, Inc. reported a decline in earnings per share for Q1 2025, with earnings of $1.95, down 11.4% from $2.20 in the prior year, and missing the Zacks Consensus Estimate of $2.50 by 22% [1] - The company's net sales for Q1 2025 were $844.6 million, missing the Zacks Consensus Estimate of $851 million by 0.7%, but showing a year-over-year increase of 6.4% from $794.1 million [2] - First Solar has lowered its 2025 guidance for earnings, sales, and gross profit due to the expected impact of new tariffs [5][6][7] Financial Performance - The gross profit for Q1 2025 was $344.4 million, a slight decrease of 0.5% from $346 million in the same quarter last year [3] - Total operating expenses increased by 18.4% year-over-year to $123.2 million, leading to an operating income of $221.2 million, down from $243.1 million in the prior year [3] - As of March 31, 2025, First Solar had $0.84 billion in cash and cash equivalents, down from $1.62 billion at the end of 2024, while long-term debt decreased to $327.9 million from $373.4 million [4] 2025 Guidance - First Solar now expects earnings in the range of $12.50-$17.50 per share, down from the previous guidance of $17.00-$20.00, with the Zacks Consensus Estimate at $18.22 [5] - The company anticipates sales between $4.50-$5.50 billion, reduced from the earlier range of $5.30-$5.80 billion, with the consensus estimate at $5.48 billion [6] - Gross profit is now expected to be between $1.96-$2.47 billion, down from $2.45-$2.75 billion, and operating income is anticipated to be in the range of $1.45-$2.00 billion, compared to the previous guidance of $1.95-$2.30 billion [7] Operational Highlights - Module shipments are now expected to be between 15.5-19.3 gigawatts (GW), down from the prior guidance of 18-20 GW [8] - The capital expenditure guidance has been narrowed from $1.30-$1.50 billion to $1.00-$1.50 billion [8]

Group 1 - First Solar Inc (NASDAQ:FSLR) experienced a 9.7% decline in stock price, reaching $123.90, following a first-quarter earnings and revenue miss, along with a lowered annual sales and profit outlook [1] - CEO Mark Widmar indicated that tariffs are creating an unexpected and significant economic headwind for the company [1] - Oppenheimer downgraded First Solar stock from "outperform" to "perform," while Keybanc reduced its rating from "sector weight" to "underweight" [1] Group 2 - The stock is approaching its two-year low of $116.56, marking its worst daily drop since February, with support at the $120 level appearing to hold [2] - Year-to-date, First Solar's equity has decreased by 29.2% [2] - There has been significant options activity, with 36,000 calls and 37,000 puts traded, which is seven times the typical volume, with June 120 and 90 puts being the most popular [2]

Core Viewpoint - First Solar's stock experienced a significant decline due to unexpected tariffs imposed by President Trump, which are seen as a major economic challenge for the company [1][2]. Company Summary - First Solar is the largest publicly traded manufacturer of solar modules in the United States, and it has been recognized by Wall Street analysts as well-positioned to handle tariffs due to its investments in U.S. manufacturing facilities [3]. - The company's CEO, Mark Widmar, indicated that the tariffs have introduced significant challenges for 2025 that were not anticipated at the beginning of the year [2]. Market Reaction - Following the announcement regarding the tariffs, First Solar's stock was trading nearly 13% lower before the market opened and has declined over 22% year to date [2].

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]

Financial Data and Key Metrics Changes - The Q1 earnings per diluted share was $1.95, which was below the low end of the guidance range, primarily due to a higher proportion of international sales compared to U.S. sales [5][39] - The total contracted backlog as of March 31, 2025, was 66.1 gigawatts, with an aggregate value of approximately $19.8 billion, reflecting a decrease from the previous quarter [35][39] - Gross margin for Q1 was 41%, up from 37% in the prior quarter, driven by a higher mix of U.S. manufactured modules qualifying for Section 45X tax credits [40][41] Business Line Data and Key Metrics Changes - In Q1, the company recorded 2.9 gigawatts of module sales, with 1.75 gigawatts being domestically produced [39] - The company produced 4.0 gigawatts in Q1, split evenly between Series 6 and Series 7 modules [5][6] - Approximately 32.5 gigawatts of contracted volume included potential adjustments that could generate additional revenue of up to $600 million [36] Market Data and Key Metrics Changes - The company secured net bookings of 0.6 gigawatts at a base ASP of $0.305 per watt since the previous earnings call [4] - The mid to late stage bookings opportunities increased by approximately 2.6 gigawatts to 23.7 gigawatts, driven by demand in India [37][38] - The company anticipates a significant increase in domestic India bookings due to the PM Kusum initiative, which aims to add 30 gigawatts of solar capacity by March 2026 [38] Company Strategy and Development Direction - The company plans to pivot its India facility to focus more on the domestic market due to expected tariff impacts on U.S. exports [15][17] - The company is positioned as the only U.S. headquartered PV manufacturer of scale with a fully vertically integrated manufacturing presence across three states [19][20] - 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 U.S. solar demand despite near-term challenges from new tariffs [33][63] - The company highlighted the importance of enforcing U.S. trade laws to counter unfair practices from Chinese manufacturers [34][21] - Management noted that the recent tariff regime has introduced significant uncertainty, impacting operational and financial guidance [50][62] Other Important Information - The company completed a limited commercial production run of modules employing CURE technology, with initial data confirming expected performance improvements [6][7] - The company is facing challenges related to increased capital expenditure costs and production costs due to the new tariff regime [49][50] - The company anticipates a decrease in cash balance due to increased accounts receivable and inventory levels [44][45] Q&A Session Summary Question: Outlook for bookings and impact of tariffs - Management noted that there has been increased customer engagement and momentum for bookings, but pricing dynamics remain uncertain due to tariff implications [66][68] Question: Underperformance of modules - Management confirmed that third-party reports validated root causes of production issues and corrective actions have been implemented [70] Question: Expected resolution of warehousing expenses - Management indicated that the resolution of warehousing expenses may extend into 2026, depending on production and delivery schedules [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]