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Highlights:
- The FSLR stock soared over two per cent in the pre-market session on August 30.
- First Solar plans to grow its solar panel production operations.
- It would spend about US$ 1.2 billion for the expansion.
The stock of First Solar, Inc. (NASDAQ:FSLR) appeared to be gaining investors' attention in the pre-market trading session on Tuesday, August 30, after it unveiled its plans to expand its solar panel production operating segment. The FSLR stock was above two per cent in the pre-market trading session on Tuesday morning.
Let's take a little dive into the recent developments of First Solar before exploring its financials and stock performance.
Why is First Solar, Inc. (NASDAQ:FSLR) soaring?
The FSLR stock advanced after it said it would build a new solar panel manufacturing facility in the US. This marks the company's push toward expanding its solar panel production operations.
The expansion plan of the PV solar solutions provider is among the first significant spending announcement after the Inflation Reduction Act.
According to the company, it would spend about US$ 1 billion to build a new Southeast factory, which is expected to start operating in 2025. However, the exact location would be decided by First Solar later in the ongoing year.
Besides, it would spend an additional US$ 185 million to expand its manufacturing in Ohio, where it already has two facilities, and start building another.
Through this expansion plan of the Tempe, Arizona-based firm, it is anticipated to create around 850 jobs while bumping up its total US employee strength to about 3,000.
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Financial highlights of First Solar (NASDAQ:FSLR)
First Solar posted net sales of US$ 620.95 million in Q2 FY22, up from US$ 367.04 million in the previous quarter. However, its net sales deteriorated from US$ 629.18 million in Q2 FY21.
Its net income totalled US$ 55.80 million in the latest quarter, down from US$ 82.44 million in the second quarter of fiscal 2021. In Q1 2022, it posted a net loss of US$ 43.25 million.
The solar panel manufacturer had also revised its annual net sales guidance to US$ 2.55 billion to US$ 2.8 billion, from its previous forecast range of US$ 2.4 billion to US$ 2.6 billion.
Bottom line
The FSLR stock was up 2.34 per cent from its previous closing price of US$ 121.69 to trade at US$ 124.54 at 8:46 am ET on August 30. Its trading volume was about 29,580 at the time of drafting. The solar company holds a market cap of US$ 13.28 billion.
Notably, the Inflation Reduction Act (IRA) is a US$ 430 billion package that includes several policies to fight climate change. US President Joe Biden signed it into law in August, and the IRA includes new tax credits for US-manufactured solar-related items.
