What happened
Shares of First Solar (FSLR 2.12%) sank 10.1% in January, according to data from S&P Global Market Intelligence. The stock market suffered steep sell-offs last month, and investors took a more cautious approach to valuing renewable energy companies.
FSLR data by YCharts.
Considering that the Nasdaq Composite index fell 9% and many growth-dependent stocks saw much bigger pullbacks, First Solar's sell-off wasn't as bad as it could have been. Investors had to contend with threats posed by rising interest rates, other macroeconomic headwinds, the potential for escalating conflict between Ukraine and Russia, and worrying guidance from companies including Peloton Interactive, Netflix, and Tesla. January served up a whirlwind of negative catalysts, and it's not surprising First Solar stock lost some ground.
Image source: Getty Images.
So what
First Solar did have a bit of good news last month. The company announced on Jan. 13 that Swift Current Energy had placed an order for 1.2 gigawatts of its ultra-low-carbon thin film photovoltaic solar modules. First Solar is on track to deliver the modules in 2023 and 2024. The news had seemingly little impact on the company's stock price last month, and shares are now down roughly 43% from their 52-week high.
Now what
First Solar stock continued to slide early in February. The company's share price has fallen roughly 9% in this month's trading so far, and it looks like some recent tariff news has factored into the sell-off.
FSLR data by YCharts.
The Biden administration announced on Feb. 4 that it would extend tariffs on imported solar technology hardware. The tariffs had been on track to expire this month, but will now remain in place for four additional years. The new regulations will double the number of solar cells that can be imported duty free, but First Solar published a message on Twitter stating that the company was "deeply disappointed" in President Biden's decision to extend the tariffs and exclude bifacial panels. The company basically sees the exclusion as giving Chinese solar producers unrestricted access, while its own business sees ongoing negative impacts from the tariffs.
First Solar last reported earnings in November and said that it expects to post earnings per share between $4 and $4.60 on sales between $2.875 billion and $3.1 billion in the 2021 fiscal year. The company now has a market capitalization of $7.4 billion, and it will likely report fourth-quarter and full-year results within the next month or so.
