First Solar plunges after downbeat net sales forecast

Feb 24 (Reuters) - First Solar FSLR.O, the biggest U.S.-based solar panel maker, forecasts current-year sales below estimates as the U.S. solar panel expects higher prices for its products following additional tariffs on foreign-made panels, sending its shares tumbling down nearly 14% after the bell.

U.S. residential solar demand has remained weak due to high interest rates and metering reforms in top market California, which have reduced the credits customers receive for feeding excess electricity back into the grid.

The solar industry, which has already been grappling with lackluster demand and high interest rates, is now bracing for a new wave of uncertainty tied to U.S. President Donald Trump's trade and energy policies.

However, the company's net sales came in at $1.68 billion for the quarter ended December 31, up about 11.1% from the year-ago period, driven by an increase in the volume of modules sold in the quarter.

The Arizona-based company now expects 2026 net sales to be in the range of $4.9 billion to $5.2 billion. Analysts, on average, were expecting $6.12 billion, according to data compiled by LSEG.

First Solar reported net income for the fourth quarter of $4.84 per share, compared to $3.65 per share a year ago.