Why Are First Solar Shares Surging On Friday?

First Solar, Inc. (NASDAQ:FSLR) shares are surging on Friday. On Thursday after market close, the company reported third-quarter FY25 earnings results.

Earnings Results

The company reported sales of $1.6 billion, beating the consensus of $1.56 billion, while EPS of $4.24 missed the consensus of $4.30.

First Solar narrowed its FY25 EPS guidance to $14.00–$15.00 from $13.50–$16.50 (vs. $15.18 consensus) and its sales outlook to $4.95 billion–$5.20 billion from $4.90 billion–$5.70 billion (vs. $5.28 billion consensus).

The company reported record module shipments of 5.3 GW and secured 2.7 GW in new bookings since the last earnings call, with an average selling price of 30.9 cents per watt, excluding pricing adjusters.

As of September 30, 2025, the contracted sales backlog stood at 53.7 GW, valued at $16.4 billion.

As of quarter-end, cash and cash equivalents totaled $1.5 billion.

Analyst Price Forecast Boost

Keybanc analyst Sophie Karp raised the price forecast from $100 to $150, while maintaining an Underweight rating.

The analyst writes that the company reported results primarily in line with consensus but narrowed FY25 guidance due to operational challenges, including supply chain disruptions and contract terminations.

The company highlighted developments and challenges such as debookings and related strategy, strong pricing and demand, and the implications of policy uncertainty, notes the analyst.

The analyst says, however, that the company stressed that demand fundamentals remain strong, backed by a robust backlog and favorable policy.

Consequently, the analyst lowered estimates for fourth-quarter FY25 revenue to $1.554 billion (from $1.684 billion), below the consensus of $1.785 billion, and EPS to $5.13 (from $5.48), below the street view of $5.61.

Also, Karp slashed estimates for FY25 revenue to $5.091 billion (from $5.155 billion), vs. consensus of $5.280 billion, and EPS to $14.50 (from $14.95), vs. street view of $15.17.

Price Action: FSLR shares are up 12.75% at $263.36 at the last check on Friday.

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