Increasing the size of First Solar $FSLR (+0.82%) 🤑🤞🏼

Tomorrow, the company will announce its figures for the quarter ended December 31, 2023.

26 Analysts estimate that First Solar will report average earnings per share of USD 3.14 for the most recent quarter. In the previous year, the company generated EPS of USD -0.070 per share.

The USA has made a strategic U-turn in recent years. China is no longer perceived as a reliable partner, which is why it is working on a total reorganization of global supply chains.

First Solar benefits significantly from tax breaks ("Section 45X tax benefits") and subsidies that reward the construction of production capacities in the USA.

First Solar estimates the positive impact of these measures at USD 670 - 700 million in the 2023 financial year.

This is more than the company has earned in total over the last five years.

In addition, changes to US legislation have come at just the right time. Most recently, the company had an order backlog of 81.8 GW, but only production capacities of around 12 GW per year.

First Solar cannot come close to meeting demand and urgently needs to create new production capacity.

I am speculating that First Solar will be able to reach an ATH again in the coming years thanks to US support