First Solar Stock: Earnings Miss Despite Revenue Climb

First Solar reported mixed fourth-quarter results with net income falling short of market expectations despite revenue growth. The company posted earnings per share of $3.65 for the quarter ended December 31, significantly below analyst estimates of $4.83, while revenue reached $1.5 billion, narrowly exceeding forecasts of $1.49 billion. The solar panel manufacturer saw its net profit increase to $393 million, representing a 13% rise compared to the same period last year. Despite the earnings miss, First Solar's shares climbed approximately 2% in pre-market trading, suggesting investors were relieved by the revenue performance that outpaced concerns in a challenging market environment. The company's fourth-quarter revenue showed impressive year-over-year growth of 30.7%, highlighting its strengthening position in the renewable energy sector.

Cautious Outlook Amid Uncertainties

Looking ahead to fiscal year 2025, First Solar has issued broader guidance ranges than in previous years, reflecting significant market uncertainties. The company forecasts earnings per share between $17.00 and $20.00, below the average analyst expectation of $20.17, while projecting annual revenue between $5.3 and $5.8 billion, aligning with market expectations. Management cited substantial uncertainties in the current political landscape and limited ability to compensate for canceled or reassigned deliveries as reasons for this cautious stance. Industry experts note that some customers have postponed deliveries to the following year due to uncertainties surrounding policies and tariffs, while others opted for intra-year shifts, potentially creating a revenue concentration in the second half of the year.