First Solar's robust sales beat expectations in the third quarter

First Solar's shares rose more than 5% on extended trading after it beat third-quarter expectations. This was due to robust demand for the company's products.

Solar-generated electricity has been growing at a rapid rate in the U.S. Energy Industry, driven by the strong desire of corporations and government to use cleaner energy sources and fight climate change.

The company announced that it would build a new production facility of 3.7 GW in the U.S. Production is expected to begin at the end 2026, and increase through the first half 2027.

The company posted a profit for the third-quarter of $455.9 millions, or $4.24 a share. This is up from $341.87million, or $3.18 a share, one year ago.

The company has also lowered its sales forecast for the current year, as it is dealing with the effects of President Donald Trump’s trade policies.

It expects its annual sales in 2025 to range between $4.95 and $5.2 billion, as opposed to the $4.9 to $5.7 billion it had previously predicted.

On a conference phone, the company stated that "reduced volumes of international sales due to terminations by customers are partially offset by termination payment".

In a regulatory filing, the firm revealed that it had to cancel various master supply contracts with a major customer in the oil and gas industry. First Solar reduced its backlog by 6.6 Gigawatts of solar modules at a transaction price of $1.9 Billion.

First Solar has also lowered its forecast range of volumes sold from 19,3 GW to 17,4 GW while maintaining the low end at 16,7 GW.

LSEG data shows that the company's net sales for the three-month period ended September 30 were $1.6 billion, which is higher than analysts' expectations of $1.56billion.

(source: Reuters)