Core Viewpoint - First Solar Inc. (FSLR) has shown strong stock performance, gaining 29.4% over the past three months, outperforming both the solar industry and broader market indices [1][9]. Company Performance - FSLR's stock performance is attributed to aggressive expansion plans, including the start of operations at its fourth U.S. manufacturing facility in Q2 2025 [4]. - The company plans to add approximately four gigawatts (GW) of new capacity, aiming for an annual manufacturing capacity exceeding 25 GW by the end of 2026 [5]. - FSLR has entered contracts for the future sale of 66.1 GW of solar modules, valued at $19.8 billion, expected to contribute to revenue through 2030 [10]. Market Outlook - The growth prospects for FSLR are supported by ongoing capacity expansion and a strong demand outlook for solar energy [7]. - The Zacks Consensus Estimate for FSLR's long-term earnings growth rate is 34.5%, surpassing the industry's growth rate of 23.1% [11]. Financial Estimates - The Zacks Consensus Estimate indicates revenue growth of 18.2% and 18.3% for 2025 and 2026, respectively [15]. - Current estimates for FSLR's 2025 and 2026 revenues are $4.97 billion and $5.88 billion, respectively [16]. Valuation Metrics - FSLR shares are trading at a premium, with a forward Price/Sales (P/S F12M) ratio of 3.16, compared to the industry average of 1.27 [18]. - Competitors Canadian Solar (CSIQ) and SolarEdge Technologies (SEDG) are trading at lower P/S ratios of 0.13 and 1.30, respectively [19].

Core Viewpoint - First Solar Inc. (FSLR) has experienced a significant decline in its stock price, dropping 21.2% over the past six months, which is worse than the solar industry decline of 19.3% and the broader Zacks Oil-Energy sector growth of 5.3% [1][8] Performance Comparison - Other solar stocks, such as Canadian Solar (CSIQ) and SolarEdge Technologies (SEDG), have outperformed FSLR, with CSIQ losing 7.8% and SEDG gaining 15% in the same period [2] Reasons for Decline - FSLR's poor performance is attributed to weak first-quarter 2025 results, with earnings per share down 11.4% year-over-year and a significant drop in operating income [4] - Manufacturing issues with Series 7 modules produced in 2023 and 2024 have led to substantial warranty charges, estimated to be between $56 million and $100 million in the near future [5] - The imposition of a 10% "baseline" tariff on most trading partners, including key manufacturing regions, has raised costs and negatively impacted operational results, prompting a reduction in 2025 guidance [6][8] Future Outlook - Despite current challenges, FSLR is expanding its manufacturing capacity, with plans for a new facility expected to begin operations in the second half of 2025, aiming for 16% revenue growth in both 2025 and 2026 [9][10] - The Zacks Consensus Estimate projects a revenue increase of 16.3% for 2025 and 16.8% for 2026, alongside a long-term earnings growth rate of 34.5% [12][10] Near-Term Estimates - The Zacks Consensus Estimate for FSLR's 2025 revenue is $4.89 billion, with a year-over-year growth estimate of 16.28% [13] - Earnings per share estimates for 2025 have seen a downward revision, indicating reduced analyst confidence, with a projected EPS of 14.50 for 2025, reflecting a year-over-year growth of 20.63% [14] Valuation Comparison - FSLR shares are trading at a premium with a forward Price/Sales (P/S F12M) ratio of 2.92, compared to the industry average of 1.16 [15] - In contrast, peers CSIQ and SEDG are trading at lower P/S ratios of 0.10 and 0.83, respectively [17]