First Solar (FSLR) Rallied Following the Earnings Beat and Improved Guidance

Core Insights - Ariel Global Fund's third-quarter 2025 performance was influenced by AI enthusiasm, resilient corporate earnings, the first U.S. rate cut of the year, and targeted policy easing across key regions, resulting in a +4.99% return compared to +7.62% for the MSCI ACWI Index and +6.13% for the MSCI ACWI Value Index [1] Group 1: Fund Performance - The Ariel Global Fund achieved a return of +4.99% in Q3 2025 [1] - The MSCI ACWI Index and MSCI ACWI Value Index returned +7.62% and +6.13%, respectively [1] Group 2: First Solar, Inc. Overview - First Solar, Inc. (NASDAQ:FSLR) reported a one-month return of 12.91% and a 52-week gain of 36.44%, closing at $252.19 per share with a market capitalization of $27.06 billion on November 18, 2025 [2] - The company is recognized for its solar panel production and technology [3] Group 3: First Solar's Q3 Performance and Outlook - First Solar was the top contributor to the Ariel Global Fund's performance in Q3 2025, following an earnings beat and upward revision in full-year guidance [3] - July bookings indicate that First Solar is regaining pricing power, supported by the Commerce Department's Section 232 investigation into polysilicon [3] - The company is nearing a strategic move to combine international front-end processing with domestic back-end assembly, which could enhance margins [3] - Anticipated clarity on safe harbor rules related to the One Big Beautiful Bill Act is expected to accelerate contract activity for First Solar as customers seek to lock in capacity and qualify for subsidies [3] Group 4: Hedge Fund Interest and Sales Growth - First Solar was held by 68 hedge fund portfolios at the end of Q2 2025, an increase from 52 in the previous quarter [4] - The company reported net sales of $1.6 billion in Q3 2025, an increase of $0.5 billion compared to the prior quarter [4]