First Solar (NASDAQ:FSLR) reported better-than-anticipated second-quarter results, driven by solid demand for the company’s solar modules and higher pricing. Moreover, the company announced a $1.1 billion investment in a new, manufacturing facility in the U.S., in line with the Biden administration’s agenda to boost domestic production. FSLR stock jumped 7.4% in Thursday’s after-hours trading.
In contrast, shares of Enphase Energy (NASDAQ:ENPH) tanked about 13% in Thursday’s extended trading session, as its second-quarter revenue missed Wall Street’s expectations. Moreover, Enphase issued a lackluster outlook for the third quarter.
FSLR’s Impressive Q2 Earnings
First Solar’s Q2 net sales increased 30.5% year-over-year to $810.7 million, driven by higher volumes of solar modules, including the sales of the company’s next-generation Series 7 modules, and a rise in the pricing of its modules.
The company’s Q2 EPS jumped to $1.59 from $0.52 in the prior-year quarter. First Solar’s Q2 sales and adjusted EPS surpassed analysts’ estimates of $711 million and $1.00 per share, respectively.
Highlighting its strong business momentum, the company disclosed that its year-to-date net bookings stand at 21.1 gigawatts. Additionally, FSLR has a total backlog of future bookings worth 78.3 gigawatts, including 48.5 gigawatts of mid to late-stage opportunities.
First Solar reiterated its full-year revenue guidance in the range of $3.4 billion to $3.6 billion and EPS outlook of $7 to $8.
Further Investment in Domestic Manufacturing
First Solar announced that it will invest up to $1.1 billion in building a new, fully vertically-integrated manufacturing facility in the U.S. to produce photovoltaic (PV) solar modules. This would mark the company’s fifth facility in the country.
While the new facility’s location is yet to be decided, the company expects to complete and commission the plant in the first half of 2026. The new facility will produce First Solar’s Series 7 modules, which are expected to be produced with 100% US-made components. It is projected to grow the company’s nameplate manufacturing capacity by 3.5 gigawatts, reaching about 14 GW in the U.S. and 25 GW globally in 2026.
The Biden Administration is encouraging domestic production of clean energy equipment under the Inflation Reduction Act, which was passed last year.
Applauding First Solar’s investment in the U.S., President Joe Biden said, “Today’s announcement by First Solar, a proud American company, represents another huge investment in American manufacturing and building our supply chains here at home – that’s what Bidenomics is all about.”
Is FSLR Stock a Good Buy?
Wall Street has a Moderate Buy consensus rating on First Solar stock based on seven Buys, 11 Holds, and one Sell. The average price target of $220.92 implies 11.1% upside.
