First Solar Stock Shines on Q4 Earnings Beat and Full-Year Outlook—Key Level to Monitor

First Solar (FSLR) shares climbed more than 4% in premarket trading on Wednesday after the company topped Wall Street’s fourth-quarter bottom-line forecast and issued better-than-expected full-year earnings guidance amid robust demand for its renewable energy products.

For the December quarter, the Tempe, Arizona-based solar panel manufacturer reported net income of $349 million, or $3.25 per share, ahead of the $3.19-a-share figure expected by analysts. Although revenue in the period grew from $801 million to $1.16 billion, it came in below the $1.3 billion consensus mark. The company attributed higher revenue in the quarter to an increase in module sales.

Looking ahead, the company sees 2024 earnings per share (EPS) of between $13 and $14, with the midpoint of that forecast topping Wall Street’s view of $13.26. It projects annual net sales of $4.4 billion to $4.6 billion compared to $4.56 billion modeled by analysts.This indicates net sales growth of around 36% from 2023.

“Despite industry macro challenges such as global oversupply and pricing volatility, we continue to see strong mid- to long-term demand, especially in the United States,” CEO Mark Widmar said in the company’s earnings call. The domestic solar module market has mostly avoided the supply glut seen globally due to U.S. tariffs limiting imports from China.

First Solar also said that it expects to receive between $1 billion and $1.05 billion in tax credits this year—a government subsidy available to the company for each product it manufactures domestically.

Since breaking below a Wyckoff distribution phase in mid-September last year, First Solar shares have mostly traded sideways on lackluster volume. If the stock has a follow-through earnings rally, monitor the $174 level—an area on the chart where the price may find a confluence of resistance from the distribution phase’s lower trendline and the falling 200-day moving average. A break above this important technical level could see bulls retest the stock’s 2023 high set in May at $232.

First Solar shares were up 4.6% at $151.63 about three hours before the opening bell.

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