First Solar, Inc. (NASDAQ:FSLR) Earnings Preview: A Deep Dive into Financial Performance and Market Challenges

First Solar, Inc. (NASDAQ:FSLR) is set to release its quarterly earnings with an expected EPS of $2.68 and projected revenue of approximately $1.04 billion. The company faces challenges due to tariffs and a changing sales mix, impacting earnings despite the robust global demand for solar energy. Financial metrics reveal a P/E ratio of 15.40, a price-to-sales ratio of 4.58, and a low debt-to-equity ratio of 0.077, indicating a strong market position and conservative debt use.

First Solar, Inc. (NASDAQ:FSLR) is a leading player in the solar energy sector, known for its advanced photovoltaic (PV) solar modules. As the company prepares to release its quarterly earnings on July 31, 2025, analysts are keenly observing its financial performance. The expected earnings per share (EPS) is $2.68, with projected revenue of approximately $1.04 billion.

Despite the robust global demand for solar energy, First Solar faces challenges due to tariffs and a changing sales mix. The company has seen a shift in module sales to cost-sensitive markets like India, driven by new tariffs that have reduced output from Southeast Asia. This shift, along with higher production costs in the U.S., may impact earnings negatively.

In the previous quarter, First Solar reported a negative earnings surprise of 22%, and it has averaged a negative earnings surprise of 6.94% over the last four quarters. This trend suggests potential volatility in earnings, despite the increasing global demand for solar energy, which is fueled by rising energy consumption and decreasing installation costs.

First Solar's financial metrics provide insight into its market position. With a price-to-earnings (P/E) ratio of 15.40, investors are paying $15.40 for every dollar of earnings. The company's price-to-sales ratio is 4.58, and its enterprise value to sales ratio is 4.53, indicating a strong valuation relative to sales. The enterprise value to operating cash flow ratio is high at 56.36, suggesting a premium valuation based on cash flow.

The company's debt-to-equity ratio is low at 0.077, reflecting a conservative use of debt. Additionally, the current ratio of 1.93 indicates a strong ability to cover short-term liabilities with short-term assets. As First Solar releases its earnings, the sustainability of any immediate price changes will depend on management's discussion of business conditions during the earnings call.