First Solar Stock Loses Power Ahead Of Q4 Earnings, Analysts Still See 67% Upside

First Solar, Inc. (NASDAQ: FSLR) stock has been on a rollercoaster ride in recent months, with the company's shares falling over 15% since the 2024 US Election and 39.5% from their highs in June. As the solar technology giant prepares to report its fourth-quarter and full-year 2024 financial results on Tuesday, February 25, investors are left wondering what lies ahead for the company's stock price.

First Solar's recent stock price decline can be attributed to several factors, including market concerns over the potential repeal of the Inflation Reduction Act (IRA) tax credits, Chinese oversupply and competition, and geopolitical uncertainty. The election of Donald Trump as President in 2024 has raised concerns about the potential repeal of these tax credits, as Trump has previously expressed skepticism about renewable energy and climate change. Additionally, the solar industry has been facing increased competition from Chinese manufacturers, who have been able to produce solar panels at a lower cost. This has put pressure on First Solar's margins and could impact the company's earnings in the upcoming quarter.

Despite these challenges, analysts remain bullish on First Solar's long-term growth prospects. The average price target for First Solar stock is $278.71, which represents an increase of 85.81% from the latest price. This indicates that analysts expect the stock to rebound significantly in the coming months and years. The average analyst rating for First Solar stock is "Strong Buy," with 25 analysts providing ratings. This consensus rating suggests that analysts are overwhelmingly bullish on the company's long-term prospects.



First Solar's strong financial performance and innovative technology have contributed to analysts' confidence in the company's ability to overcome recent challenges and continue its long-term growth trajectory. In the first quarter of 2024, the company reported YTD net bookings of 2.7 GW with an average selling price (ASP) of 31.3 cents per watt, excluding adjusters. The expected sales backlog as of the first quarter of 2024 was 78.3 GW. These figures reflect the demand for the company's products and the pipeline of projects, indicating a strong growth trajectory for the company.

Investors will be looking for updates on First Solar's net bookings and any changes to the company's sales backlog in the upcoming earnings report. Wall Street will also be interested in the company's guidance heading into fiscal 2025. First Solar lowered its fiscal 2024 net sales forecast to a range of $4.1 billion to $4.25 billion, versus the $4.44 billion estimate, last quarter. The company also lowered its full-year earnings forecast from between $13 and $14 per share to between $13 and $13.50 per share, versus the $13.49 estimate.

First Solar executives may provide commentary on the political climate and new Energy Secretary Chris Wright, whose background in the fossil fuel industry and his views on climate change and renewable energy could be of concern. Investors will be interested in any insights the company provides on how the political climate may impact its business in the coming quarters.

In conclusion, First Solar's fourth-quarter earnings report will be closely watched by investors, with a focus on sales and net bookings. If the company meets or exceeds expectations, it would signal a strong performance for the quarter and a positive outlook for the future. As the company continues to navigate the political climate and compete in the solar energy sector, investors should monitor key metrics and developments to assess its competitive position and potential for growth. Despite the recent stock price decline, analysts remain confident in First Solar's long-term growth prospects, with an average price target of $278.71 and a consensus rating of "Strong Buy."