Is FSLR's Q4 2024 EPS growth sustainable?

**First Solar's Q4 2024 EPS growth may not be fully sustainable** for the following reasons:

1. **Missed EPS Expectations**: Although First Solar reported a revenue of $1.51 billion in Q4 2024, which is a 31% year-over-year increase, the company's earnings per share (EPS) came in at $3.65, missing analysts’ expectations by $1.08. This indicates that the company's profitability did not meet market expectations.
2. **Challenges and Uncertainties**: First Solar faces challenges such as policy uncertainties and international market access, which could impact its future earnings. Additionally, the company has a substantial backlog of 72.8 GW, but recent quarters have seen modest declines in backlog growth, which could affect future revenue and EPS.
3. **Market Conditions and Competition**: The solar industry is highly competitive, and First Solar operates in a landscape of rapid innovation and regulatory changes. The company's ability to sustain its EPS growth will depend on its ability to adapt to these changing market conditions and maintain its competitive edge.
4. **Financial Health and Investments**: While First Solar has a strong financial health score and is positioned as a beneficiary of policy initiatives like the Inflation Reduction Act (IRA), the company's stock is undervalued, and it has been making significant capital investments. These investments could impact short-term profitability and EPS growth.

In conclusion, while First Solar has demonstrated strong growth in revenue and net income, the missed EPS expectations and the challenges it faces suggest that the company's Q4 2024 EPS growth may not be fully sustainable in the long term. The company's future performance will depend on its ability to navigate these challenges and maintain its competitive position.