Why Did First Solar Stock Jump 5% After-Hours?

• The company reported sales of $1.59 billion for the quarter ended Sept. 30, while analysts expected the solar panel maker to post $1.57 billion in sales.
• Sales growth was primarily driven by higher shipment volumes and the anticipated back-weighted delivery profile throughout the year.
• It slashed its annual outlook due to major contract cancellations of the energy firm BP.

First Solar (FSLR) stock rose 5% in extended trading after the firm’s third-quarter revenue topped Wall Street’s estimates.

The company reported sales of $1.59 billion for the quarter ended Sept. 30, while analysts expected $1.57 billion, according to Fiscal.ai data. Its quarterly net income rose to $455.94 million, or $4.24 per share, compared with $312.96 million, or $2.91 per share, a year earlier.

How Did First Solar’s Sales Rise?

The company said the sales growth was primarily driven by higher shipment volumes and the anticipated back-weighted delivery profile over the course of the year. The company logged 5.3 gigawatts (GW) of module sales during the quarter, including 2.5 GW from its U.S. manufacturing facilities.

U.S. solar project developers are increasingly buying First Solar’s panels, which use cadmium telluride rather than the more common crystalline silicon used by most manufacturers, including those in China.

“The U.S. policy and trade environment remains generally favorable,” CEO Mark Widmar said, adding that the company is keenly waiting for the Section 232 import tariffs decision on polysilicon and its derivatives, a key material in solar panels. A Tariff Rate Quota (TRQ) is widely anticipated to be implemented through Section 232. This would allow a certain amount of each targeted product to enter the U.S. annually before duties are applied.

First Solar said it will launch a 3.7 GW solar module-finishing facility in the fourth quarter of 2026 and ramp up in the first half of 2027. "This activity places us uniquely at the intersection of several of the administration's key priorities, including those related to domestic manufacturing job creation, American energy and energy affordability, and serving among the generation solutions that enable the U.S. to win the artificial intelligence race against China," Widmar said.

What Is Retail Thinking?

On Stocktwits, retail sentiment on First Solar moved to ‘extremely bullish’ from ‘bullish’ a day ago, while retail chatter rose to ‘high’ from ‘normal’ a day ago.

“I don’t think the full effect of the AI data center demand has been seen yet. I think there will be a realization in the US that solar will be required as new natgas plants take too long to get up and running,” one user wrote.

“Well done FSLR. Tailwinds for profitable companies in the sector. If you've got a decent business model, you can prosper,” another trader wrote.

Annual Sales Forecast Lowered Amid BP Contract Loss

First Solar cut its annual sales forecast to $4.95 billion to $5.20 billion, down from $4.95 billion to $5.70 billion previously. It also cut its selling volume forecast to 16.7 GW to 17.4 GW, down from 16.7 GW to 19.3 GW projected earlier.

The company said it terminated 6.6 gigawatts of bookings under multi-year agreements, defaulted on by affiliates of energy firm BP, at a base average selling price of $0.294 per watt. Reports have emerged that BP is looking to offload its U.S. renewable operations amid its cost-cutting drive.

The modules subject to the contract breach are a mix of domestic and international products, First Solar said, with most scheduled for production in the third quarter and future quarters, and deliveries expected to extend into 2029. The company has sued BP over the contract breach.

First Solar stock has gained 31% this year, banking on U.S. curbs on overseas solar exports.

Also See: Moderna Stock Rallies On Reports Of Company Entering Talks With A Drugmaker For A Potential Deal

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