How did FSLR's Q4 earnings surprise investors?

First Solar's (FSLR) Q4 2024 earnings report surprised investors in several ways:

1. **Revenue Outperformance**: First Solar exceeded market expectations with a revenue of $1.5 billion for Q4 2024, surpassing the forecasted $1.4 billion. This marked a significant year-over-year increase, reflecting the company's strong sales performance and market demand for its solar solutions.

2. **Profitability Challenges**: Despite the revenue outperformance, First Solar's EPS fell short of analyst expectations, coming in at $3.65 compared to the anticipated $4.83. This discrepancy of approximately 25% was a notable surprise, indicating challenges in maintaining profitability amidst growing revenues.
3. **Stock Reaction**: Following the earnings release, First Solar's stock exhibited a robust rebound, increasing by 5.2% in the post-market session on February 27, 2025, as investors reacted positively to the company's strong revenue growth and optimistic guidance for the upcoming year. This surge was a testament to the market's confidence in First Solar's long-term prospects despite the earnings miss.
4. **Market Dynamics**: First Solar's stock has been under pressure, dropping 20.41% over the past month as of February 25, 2025. The Q4 earnings report may not have fully alleviated these concerns, but the positive revenue outlook and guidance for 2025 have likely contributed to a more favorable investor sentiment.
5. **Analyst Sentiments**: Analysts have maintained a positive outlook on First Solar, with 87% recommending a Buy and an average price target suggesting a 98.95% upside potential. This sentiment reflects a belief in First Solar's ability to capitalize on the growing renewable energy market, despite the recent earnings miss.

In conclusion, while First Solar's Q4 earnings fell short of expectations in terms of profitability, the company's strong revenue performance and optimistic guidance for the future have likely influenced investor sentiment positively. The market's response to the earnings report has been mixed, with a notable rebound in stock price following the release, indicating a complex interplay of factors influencing investor perceptions.