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First Solar Misses Q1 Earnings Estimates, Lowers '25 Guidance

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First Solar, Inc. (FSLR - Free Report) reported first-quarter 2025 earnings of $1.95 per share, which were down 11.4% from the prior-year quarter’s figure of $2.20. The bottom line also missed the Zacks Consensus Estimate of $2.50 per share by 22%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

The year-over-year decline in the bottom line can be attributed to higher cost of sales and total operating expenses from the prior-year quarter.

FSLR’s Sales Update

First Solar’s first-quarter net sales were $844.6 million, which missed the Zacks Consensus Estimate of $851 million by 0.7%. However, the top line improved 6.4% from the year-ago quarter’s $794.1 million.

First Solar, Inc. Price, Consensus and EPS Surprise

First Solar, Inc. Price, Consensus and EPS Surprise

First Solar, Inc. price-consensus-eps-surprise-chart | First Solar, Inc. Quote

Operational Highlights of FSLR

In the first quarter, the company’s gross profit was $344.4 million, which slipped 0.5% from $346 million in the year-ago quarter.

Total operating expenses rose 18.4% year over year to $123.2 million.

FSLR reported an operating income of $221.2 million compared with $243.1 million in the year-ago quarter.

Financial Performance of First Solar

First Solar had $0.84 billion in cash and cash equivalents as of March 31, 2025, down from $1.62 billion as of Dec. 31, 2024.

The long-term debt totaled $327.9 million as of the same date compared with $373.4 million as of Dec. 31, 2024.

The net cash used in operating activities amounted to $608 million during the first three months of 2025 against cash generated from operating activities of $267.7 million during the first three months of 2024.

First Solar’s 2025 Guidance

First Solar has lowered its 2025 guidance, taking into account the expected impact of the implementation of new tariffs in April 2025.

FSLR now expects to generate earnings in the range of $12.50-$17.50 per share, much lower than the earlier guided range of $17.00-$20.00. The Zacks Consensus Estimate for earnings is pegged at $18.22 per share, higher than the company’s guided range.

FSLR now expects to record sales in the range of $4.50-$5.50 billion, lower than its earlier guided range of $5.30-$5.80 billion. The consensus estimate for sales is pegged at $5.48 billion, which lies just below the upper range of the company’s guided range.

First Solar now expects gross profit to be in the band of $1.96-$2.47 billion, lower than the previous guided range of $2.45-$2.75 billion. Its operating income is now anticipated to be in the $1.45-$2.00 billion range compared with the earlier guidance of $1.95-$2.30 billion.

The company currently expects module shipments to be in the band of 15.5-19.3 gigawatts (GW) compared with the prior guidance of 18-20 GW. First Solar has also narrowed its 2025 capital expenditure guidance range from $1.30-$1.50 billion to $1.00-$1.50 billion.

FSLR’s Zacks Rank

First Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Recent Solar Release

Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2025 adjusted earnings of 68 cents per share, which missed the Zacks Consensus Estimate of 71 cents by 4.2%. The company’s revenues of $356.1 million missed the Zacks Consensus Estimate of $362 million by 1.7%.

Upcoming Solar Releases

Nextracker Inc. (NXT - Free Report) is scheduled to report its fiscal fourth-quarter 2025 results on May 14, after market close.

The Zacks Consensus Estimate for sales is pegged at $828.3 million, which indicates a 12.5% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at 98 cents per share, which indicates year-over-year growth of 2.1%.

Array Technologies (ARRY - Free Report) is scheduled to report its first-quarter 2025 results on May 6, before market open.

The Zacks Consensus Estimate for sales is pegged at $263.1 million, which indicates a 71.5% improvement from the year-ago quarter’s figure. The consensus estimate for earnings is pinned at nine cents per share, which indicates year-over-year growth of 50%.

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