First Solar lowered its annual sales outlook, citing tariff headwinds
Renewable energy stock First Solar Inc (NASDAQ:FSLR) is down 9.7% at $123.90 at last glance, after the company posted a first-quarter earnings and revenue miss and lowered its annual sales and profit outlook. CEO Mark Widmar said tariffs create an unexpected and "significant economic headwind."
Oppenheimer downgraded First Solar stock to "perform" from "outperform" after today's events, while Keybanc cut its rating to "underweight" from "sector weight." Plenty of other analysts slashed their price targets as well. More bear notes could be on the way, as 29 of the 34 analysts in coverage still carry a "buy" or better rating, while the 12-month consensus price target of $212.34 sits at a hefty 70% premium to current levels.
Today's drop has FSLR moving back toward its April 9 two-year low of $116.56 and its worst daily drop since February. However, support at the $120 level looks to be holding steady. Since the start of the year, the equity is down 29.2%.
So far today, 36,000 calls and 37,000 puts have crossed the tape, which is 7 times the overall options volume typically seen at this point. The June 120 and 90 puts are the most popular, with new positions being sold to open at the May 140 call.