First Solar stock plunges on weak guidance

First Solar (FSLR.US) stock fell over 11.0% during today's session after the company beat estimates on earnings but fell short on revenue in Q4 and issued weak full-year outlook.

• EPS: $1.23 per share vs. $1.06 expected, Revenue: $907 million vs. $918 million
• The industry faced "supply chain, logistics, cost, and pandemic-related challenges," Chief Executive Mark Widmar said in a statement, and continues to navigate near-term headwinds.
• The solar-panel manufacturer expects 2022 revenue in the range of $2.4 billion to $2.6 billion. That's below the analyst estimates of $2.75 billion. It expects adjusted earnings in a range of zero to 60 cents, well below market consensus of $1.81.
• This year earnings may be hit by elevated freight costs. Company said that prices for contracted volumes have risen between 200% and 300% above pre-pandemic levels. In 2022, First Solar expects contracted freight rates to increase 100% year over year and point to rising commodities prices including steel which jumped over 40% in 2021.
• Despite the negative outlook, the company is working on expanding its operations. New facilities are scheduled to start production in 2023.

First Solar (FSLR.US) stock has been moving in a downward trend since the beginning of November 2021. Last upward correction was launched, however bulls failed to break above resistance at $77.40 which is marked with previous price reactions and 50 SMA (green line). Price pulled back sharply today and is currently testing support at $65.00 which coincides with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Should break lower occur, downward move may accelerate towards next support at $49.40. Source: xStation5