First Solar Lowers Sales Forecast

(Reuters) – U.S. solar panel maker First Solar (NASDAQ:FSLR) lowered its sales forecast for the current year on Tuesday, despite reporting a rise in third-quarter profit driven by higher prices due to additional tariffs on foreign-made panels.

Shares decreased by 6.9% to $185.99 in after-market trading.

Current Challenges

Residential installations have sharply declined this year, and utility-scale projects face challenges such as lengthy waits to connect to the grid and a shortage of skilled labor.

Updated Sales Forecast

The company revised its full-year 2024 sales forecast to between $4.10 billion and $4.25 billion, down from the previous expectation of $4.4 billion to $4.6 billion.

Quarterly Performance

First Solar reported a sequential decline in quarterly sales due to a decrease in the volume of megawatt (MW) sold. However, it did report a 16.6% rise in net profit for the quarter ended September 30, totaling $313 million, or $2.91 per share, compared to the previous year.

The Biden administration's new tariffs on foreign-made solar modules, imposed in May, have benefited U.S. companies like First Solar that produce domestically.