First Solar falls as guidance disappoints despite record volume

Investing.com -- First Solar, Inc. (NASDAQ:FSLR) shares dropped 3.3% in after-hours trading Thursday after the solar module manufacturer issued disappointing full-year guidance despite reporting record quarterly volume and strong third-quarter results.

The company reported third-quarter adjusted earnings of $4.24 per share, slightly missing analyst expectations of $4.27, on revenue of $1.59 billion, which narrowly beat the consensus estimate of $1.58 billion. The revenue figure represented a significant increase from the previous quarter, driven by record volume sold of 5.3 gigawatts (GW).

First Solar lowered its full-year 2025 revenue guidance to $4.95-$5.20 billion, down from its previous forecast of $4.90-$5.70 billion and below analyst expectations of $5.3 billion. The company also trimmed its earnings guidance to $14.00-$15.00 per share, compared to its earlier projection of $13.50-$16.50 and below the consensus estimate of $15.13.

"As a result of our disciplined approach to balancing growth, liquidity, and profitability, we’ve further strengthened our position through the commissioning of our fifth U.S. manufacturing facility, enhancing our liquidity position, and delivering record sales," said CEO Mark Widmar.

The company’s net cash balance improved significantly to $1.5 billion at the end of the third quarter, up from $0.6 billion in the previous quarter, primarily due to higher cash receipts from module sales and favorable working capital changes.

First Solar secured 2.7 GW in new bookings since its last earnings call, with an average selling price of 30.9 cents per watt. The company’s contracted sales backlog stood at 53.7 GW as of September 30, valued at $16.4 billion.

Despite industry challenges including trade and policy developments, First Solar continues to differentiate itself by offering pricing and delivery certainty, according to management, which has helped the company respond to evolving market conditions.

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