First Solar's Strong Earnings Drive Shares to New Heights
First Solar Shares Experience Remarkable Surge
First Solar, Inc. (NASDAQ:FSLR) is making headlines today with a notable surge in its share prices, following an optimistic announcement regarding its latest financial results. After the markets closed yesterday, First Solar revealed its earnings for the third quarter of FY25, showcasing strong performance that exceeded expectations in several areas.
Impressive Earnings Results
The reported sales reached an impressive $1.6 billion, surpassing the consensus estimate of $1.56 billion. However, the earnings per share (EPS) of $4.24 slightly missed the anticipated consensus of $4.30. This mix of outcomes has set the stage for positive investor sentiment.
First Solar also took the opportunity to refine its FY25 EPS guidance to a new range of $14.00 to $15.00, adjusting it from the previous range of $13.50 to $16.50, which contrasts with the consensus prediction of $15.18. Their sales outlook was also narrowed down to an expected range of $4.95 billion to $5.20 billion, compared to the prior $4.90 billion to $5.70 billion.
Record Module Shipments and Backlog
One of the most exciting highlights from the earnings report was the record shipment of solar modules, totaling 5.3 gigawatts (GW). In addition to this, the company secured 2.7 GW in new bookings since the previous earnings call. The average selling price for these modules was noted at 30.9 cents per watt, giving investors confidence in the firm’s pricing strategy and market demand.
As of September 30, 2025, First Solar's contracted sales backlog stood at a remarkable 53.7 GW, amounting to a value of $16.4 billion. This healthy backlog signals a strong demand for First Solar’s products, indicating a solid foundation for growth in the coming quarters. Furthermore, the company reported cash and cash equivalents of $1.5 billion at the quarter’s end, highlighting its robust financial health.
Analyst Insights and Forecasts
Analyst Sophie Karp from Keybanc also weighed in on the company’s performance by raising the price forecast for First Solar shares from $100 to $150, although she maintained an Underweight rating. According to Karp, while the reported results were generally in line with expectations, the narrowing of FY25 guidance stemmed from ongoing operational challenges, notably supply chain disruptions and contract terminations.
The analyst pointed out that despite these challenges, the fundamentals of demand for First Solar’s products remain strong. This is supported by a substantial backlog and favorable policy conditions, which could bolster the company's market position.
However, Karp's report included adjustments to fourth-quarter estimates, lowering projected FY25 revenue to $1.554 billion, down from $1.684 billion and below the consensus expectation of $1.785 billion. Similarly, the EPS estimate was revised down to $5.13 from $5.48, slightly below the street view of $5.61.
Yearly revenue estimates were also cut to $5.091 billion from the previous forecast of $5.155 billion, compared to a consensus of $5.280 billion. The EPS expectations for FY25 were adjusted to $14.50 from $14.95, compared to the consensus estimate of $15.17.
Current Share Price Activity
As of the latest updates, shares of FSLR have climbed 12.75%, now trading at $263.36. This positive movement reflects the market's optimistic response to the earnings report and the reiterated confidence in the company's growth prospects driven by strong fundamentals and a solid market position.
Frequently Asked Questions
What drove the recent surge in First Solar's shares?
The surge was primarily driven by the release of strong earnings results for the third quarter of FY25, which exceeded sales expectations.
How did First Solar perform in its latest earnings report?
First Solar reported $1.6 billion in sales, surpassing estimates, although EPS of $4.24 fell slightly short of the projected $4.30.
What changes did First Solar make to its EPS guidance?
The company adjusted its EPS guidance for FY25 to a range of $14.00 to $15.00, narrower than its previous outlook.
What are the current trends regarding First Solar's module shipments?
First Solar reported record module shipments of 5.3 GW, reflecting strong demand and growing bookings.
Who raised First Solar's price forecast and what was the new forecast?
Analyst Sophie Karp from Keybanc raised the price forecast from $100 to $150 while maintaining an Underweight rating.
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