First Solar: Growth Amid Challenges in the Solar Market
Company Overview and Performance Trends
Valued at a market cap of $17.4 billion, First Solar, Inc. (FSLR) stands out as a prominent provider of solar energy solutions in the global marketplace. Based in Tempe, Arizona, the company specializes in advanced photovoltaic (PV) technology and designs high-efficiency thin-film solar modules. These modules are crucial for promoting sustainable energy adoption across utility-scale, commercial, and industrial sectors.
Stock Analysis: Recent Performance
During the past 52 weeks, FSLR shares have lagged behind the broader market. FSLR gained 7.5%, while the S&P 500 Index ($SPX) saw a much stronger performance, with a 20.7% increase. In 2025, FSLR has declined by 7.6%, contrasted with a YTD rise of 3.1% for the SPX.
However, when compared to the Invesco Solar ETF (TAN), which fell by 24.7% in the same timeframe, FSLR’s performance appears relatively more resilient.
Impact of Political Decisions on Market Sentiment
On January 21, First Solar’s shares dropped by 6.6% as many solar stocks reacted negatively to former President Donald Trump’s announcement to eliminate certain renewable energy incentives. His remarks, which included plans to revoke the Green New Deal and the electric vehicle mandate, concerned investors about future clean energy policies, leading to a downturn in the sector.
Recent Earnings Review
Following the release of its Q3 earnings on October 29, First Solar experienced a slight share decline of over 1%. The company reported revenues of $887.7 million, reflecting a 10.8% year-over-year increase, although it fell short of analyst expectations by 17.6%. Furthermore, the net income per share was noted at $2.91.
Anticipation for Q4 Earnings
Looking ahead, First Solar is set to announce its fiscal Q4 earnings results after market close on Tuesday, February 25. For fiscal 2024, which ended in December, analysts project a remarkable 68.6% year-over-year growth in FSLR’s EPS to $13.05. Notably, FSLR’s earnings surprise history shows mixed results, as it surpassed analysts’ expectations in three out of the past four quarters but did miss in one instance.
Analyst Recommendations and Stock Ratings
Currently, FSLR holds a consensus “Strong Buy” rating. Out of 33 analysts covering the stock, 26 recommend a “Strong Buy,” two advise a “Moderate Buy,” and five suggest a “Hold” rating.
Positive Outlook from Analysts
In recent developments, Mizuho upgraded First Solar to “Outperform,” raising its price target to $259 from $218. This upgrade reflects an improved sales outlook post-2026 and highlights First Solar’s competitive edge due to its efficient TOPCon technology compared to U.S. rivals.
The mean price target for FSLR of $272.64 indicates a potential upside of 67.4% from current levels, while the highest target among analysts stands at $360, suggesting a remarkable increase of 121%.
On the date of publication, Rashmi Kumari did not have any positions in the securities mentioned in this article. All information and data provided are for informational purposes only. For further details, please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.