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Tempe, Arizona-based First Solar, Inc. (FSLR) is a solar technology company providing photovoltaic (PV) solar energy solutions. With a market cap of $22.6 billion, First Solar’s operations span the Americas, Europe, Indo-Pacific, and internationally. The solar industry major is expected to release its Q3 earnings after the market closes on Tuesday, Oct. 29.
Ahead of the event, analysts expect First Solar to report a profit of $3.24 per share, up 29.6% from $2.50 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s adjusted EPS projections in each of the past four quarters. Its adjusted EPS for the last reported quarter grew by a massive 75.7% year-over-year to $3.25, exceeding the consensus estimates by 21.7%.
For fiscal 2024, analysts expect First Solar to report an adjusted EPS of $13.50, up 74.4% from $7.74 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 57% year-over-year to $21.20.
FSLR has gained 21.9% on a YTD basis, slightly lagging behind the S&P 500 Index’s ($SPX) 22.9% gains but slightly outperforming the Technology Select Sector SPDR Fund’s (XLK) 21.5% return during the same time frame.
First Solar has observed notable volatility over the past months, reflecting a rollercoaster pattern in its stock performance. On May 22, the stock surged 18.7% after UBS (UBS) analyst Jon Windham raised its target price to $270, forecasting FSLR’s EPS to grow to $36.74 by 2027. Windham highlighted burgeoning electricity demand from AI data centers and advantageous protectionist policies as the key growth drivers.
FSLR rose 2.4% after the release of its Q2 earnings on Jul. 30, buoyed by a 24.6% year-over-year increase in net sales to $1 billion and a staggering 104.8% surge in net income, reaching $349.4 million.
However, FSLR plummeted 9.3% on Oct. 10 after Jefferies analyst Dushyant Ailani lowered his price target from $271 to $266, raising concerns about potential disappointments in the upcoming Q3 results. Ailani cited labor shortages and supply chain issues as significant risks that could defer revenue for the solar panel manufacturer.
The consensus opinion on FSLR stock is strongly bullish, with an overall “Strong Buy” rating. Out of the 33 analysts covering the stock, 24 recommend a “Strong Buy,” one advises a “Moderate Buy,” and eight suggest a “Hold” rating.
The mean price target of $291.67 suggests a potential upside of 38.9% from current price levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
