Key Stats for First Solar Stock
- 1-day Price Change for First Solar stock: 14%
- $FSLR Share Price as of Oct. 31: $267
- 52-Week High: $269
- $FSLR Stock Price Target: $246
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What Happened?
First Solar (FSLR) stock surged over 14% despite the solar panel manufacturer reporting mixed third-quarter results and lowering its full-year guidance.
The strong market reaction suggests investors are looking past near-term challenges and focusing on the company’s long-term positioning in U.S. solar manufacturing.
First Solar posted revenue of $1.59 billion for the third quarter, exceeding analyst expectations and marking a massive 80% jump from the same period last year. The company shipped a record 5.3 gigawatts of modules during the quarter. However, earnings came in at $4.24 per share, slightly below the consensus estimate of $4.29.
The earnings miss stemmed from several operational headwinds as two of First Solar’s domestic glass suppliers experienced manufacturing disruptions that limited production at the company’s Alabama facility by about 0.2 gigawatts.
First Solar also recorded increased underutilization charges after affiliates of BP defaulted on contracts totaling approximately 6.6 gigawatts, worth around $1.9 billion.
CEO Mark Widmar announced that First Solar filed a lawsuit against BP Solar Holding and its affiliate Lightsource Renewable Energy Trading for breach of contract.
It is seeking approximately $324 million in termination payments plus other damages. First Solar had already recognized $61 million in previously collected deposits as revenue.
Management lowered full-year revenue guidance to a midpoint of $5.08 billion, down from previous forecasts.
Earnings per share guidance was also reduced to a range of $14 to $15, with the upper end coming down by $1.50 per share.
The guidance reduction reflects the termination of the BP contract, glass supply chain issues, and reduced volumes from India operations.
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What the Market Is Telling Us About FSLR Stock
Despite the guidance cut, FSLR stock jumped because of several factors that suggest the company’s competitive position is actually strengthening.
First Solar announced plans to build a new 3.7-gigawatt U.S. production facility that will finish modules initiated at international factories. This facility is expected to start production in late 2026 and ramp up through the first half of 2027.
The new U.S. finishing line addresses multiple strategic objectives. It enables First Solar to bring international production onshore, complying with forthcoming Foreign Entity of Concern (FEOC) guidance, while reducing tariff costs and improving margins.
The modules produced at this facility will provide domestic content benefits for customers and qualify for 45X manufacturing tax credits.
Wall Street analysts raised price targets following the announcement. Bank of America Securities increased its target to $254, BMO Capital lifted its target to $261, and Citigroup raised its target to $300.
Analysts highlighted that First Solar’s U.S. facilities are sold out through 2028, demonstrating strong demand for domestically manufactured solar panels.
The favorable policy environment continues to support FSLR stock. The U.S. Court of International Trade ruled that the Biden administration’s suspension of circumvention-related antidumping duties was unlawful, potentially requiring retrospective duty payments on solar imports from June 2022 to June 2024.
The U.S. International Trade Commission also issued a preliminary determination that imports from India, Indonesia, and Laos are materially injuring the U.S. solar industry, with dumping margins ranging from 90% to 247%.
Beyond obesity, the company hit several other pipeline milestones.
- The FDA approved imlunestrant (Inluriyo) for certain types of breast cancer.
- Pirtobrutinib posted positive Phase III results in chronic lymphocytic leukemia.
- The EU approved Kisunla for early Alzheimer’s disease.
First Solar’s vertically integrated U.S. manufacturing provides a clear advantage as tariff uncertainty mounts for competitors relying on Chinese supply chains.
The company secured new bookings of 2.7 gigawatts at an average selling price of $0.309 per watt during the quarter.
One recent booking included $0.046 per watt in potential technology milestone adders, bringing the total potential price to $0.362 per watt.
The company’s cash position improved to $2 billion, boosted by better working capital, new booking deposits, and accelerated customer payments.
First Solar also executed agreements to sell up to $775 million in Section 45X tax credits, enhancing near-term liquidity to support expansion plans.
Looking ahead, FSLR stock appears positioned to benefit from the administration’s focus on domestic manufacturing and reshoring supply chains.
With a contracted backlog of 54.5 gigawatts valued at $16.4 billion, strong pricing power, and expanding U.S. capacity, First Solar is capitalizing on policy tailwinds that disadvantage import-dependent competitors.
The BP contract termination frees up capacity that management believes can be rebooked at attractive prices once Section 232 tariff decisions and FEOC guidance provide additional clarity.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
