First Solar Cuts 2025 Guidance, Analyst Bullish On Expectations Of Tax Credits Remaining Intact

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].