Why Is First Solar (FSLR) Down 7.9% Since Last Earnings Report?

It has been about a month since the last earnings report for First Solar (FSLR). Shares have lost about 7.9% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is First Solar due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for First Solar, Inc. before we dive into how investors and analysts have reacted as of late.First Solar's Q4 Earnings Lag Estimates, Revenues SurpassFirst Solar, Inc. reported fourth-quarter 2025 earnings of $4.84 per share, which missed the Zacks Consensus Estimate of $5.22 by 7.2%. The bottom line increased 32.6% from the prior-year quarter’s figure of $3.65.The company reported 2025 earnings of $14.21 per share, which were higher than the year-ago figure of $12.02.FSLR’s Sales UpdateFirst Solar’s fourth-quarter net sales were $1.68 billion, which beat the Zacks Consensus Estimate by 7%. The top line rose 11.1% from the year-ago quarter’s $1.51 billion.The year-over-year top-line improvement was driven by an increase in the volume of module sales.The company reported net sales of $5.22 billion in 2025, which were higher than $4.21 billion in 2024.Operational Highlights of FSLRIn the fourth quarter, the company’s gross profit was $665.3 million, which rose 17.2% from $567.7 million in the year-ago quarter.Total operating expenses jumped 5.9% year over year to $117.4 million.FSLR reported an operating income of $547.9 million compared with $456.8 million in the year-ago quarter.Financial Performance of First SolarFirst Solar had $2.8 billion in cash and cash equivalents as of Dec. 31, 2025, up from $1.62 billion as of Dec. 31, 2024.The long-term debt totaled $282.6 million as of the same date compared with $373.4 million as of Dec. 31, 2024.The net cash flow from operating activities amounted to $2.06 billion during 2025 compared with $1.22 billion at the end of 2024.First Solar’s 2026 GuidanceFirst Solar introduced its 2026 guidance. FSLR expects its sales to be in the range of $4.9-$5.2 billion. The Zacks Consensus Estimate for sales is pegged at $6.21 billion, which lies above the company’s guided range.First Solar expects gross margin to be in the band of $2.4-$2.6 billion. Its operating expenses are anticipated to be in the $610-$635 million range.First Solar projects module shipments to be in the band of 17-18.2 gigawatts. The company expects its 2026 capital expenditure to be in the range of $0.8-$1 billion.How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.The consensus estimate has shifted -34.06% due to these changes.VGM ScoresCurrently, First Solar has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise First Solar has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.Performance of an Industry PlayerFirst Solar belongs to the Zacks Solar industry. Another stock from the same industry, SolarEdge Technologies (SEDG), has gained 20.8% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.SolarEdge reported revenues of $335.36 million in the last reported quarter, representing a year-over-year change of +70.9%. EPS of -$0.14 for the same period compares with -$3.52 a year ago.For the current quarter, SolarEdge is expected to post a loss of $0.24 per share, indicating a change of +79% from the year-ago quarter. The Zacks Consensus Estimate has changed +2.6% over the last 30 days.SolarEdge has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.Zacks Names #1 Semiconductor StockThis under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report First Solar, Inc. (FSLR): Free Stock Analysis Report SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks