01:09 PM EDT, 05/01/2025 (MT Newswires) -- First Solar ( FSLR ) Q1 earnings were hit by its volume mix being more internationally focused during the quarter, resulting in lower gross margin, Deutsche Bank said Thursday.

The company has reported late Tuesday Q1 earnings of $1.95 per diluted share, compared with analysts' estimate of $2.36.

The bank said the impact of tariffs on the company is larger than anticipated, and it reduces its optionality to shift volumes from India and Malaysia to the US.

"The wide guidance range implies two scenarios of tariffs, which would be clarified over the coming weeks by the Administration," the bank said. The company revised its 2025 diluted EPS outlook to between $12.50 and $17.50 from $17 and $20.

"Asset optimization, potentially involving a supply chain focused on finished products into the US" could also be an option for the company. However, the bank believes "there is a large degree of uncertainty," as of today.

Deutsche Bank said it has trimmed its 2025 estimates on the company by 22% and 2026 estimates by 13%.

The bank has a buy rating on the stock.

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