Summary
FIRST SOLAR, INC. (FSLR) filed an 8-K on June 11, 2013, to reaffirm its previously issued 2013 financial guidance. The company reiterated its net sales range of $3.8 billion to $4.0 billion and an earnings per share range of $4.00 to $4.50. The filing also addressed potential impacts on quarterly results, specifically noting that the closure of the ABW projects in Canada might be delayed from the second quarter of 2013 into the second half of 2013. This potential shift could lead to a material sequential decline in Q2 2013 net sales and EPS, with a corresponding increase in the second half of 2013. Management emphasized focusing on full-year guidance due to this anticipated quarterly variability.
Key Highlights
- 1Reaffirms full-year 2013 guidance for net sales ($3.8B-$4.0B) and EPS ($4.00-$4.50).
- 2Addresses potential delay in the closure of ABW projects in Canada from Q2 2013 to the second half of 2013.
- 3Expects a material sequential decline in Q2 2013 net sales and EPS if the ABW project closure is delayed.
- 4Anticipates a corresponding material increase in net sales and EPS for the second half of 2013 due to the ABW project delay.
- 5Emphasizes investor focus on full-year guidance due to inherent quarterly variability.
- 6Notes that the information provided is for disclosure purposes and not deemed 'filed' under Section 18 of the Exchange Act, limiting liability.
- 7Includes standard forward-looking statement disclaimers regarding inherent risks and uncertainties.
Frequently Asked Questions
The main purpose of this 8-K filing is to reaffirm First Solar's previously issued financial guidance for the full year 2013, which includes net sales between $3.8 billion and $4.0 billion, and earnings per share between $4.00 and $4.50.
The company anticipates that the sale of certain projects in Canada, known as the ABW projects, might close in the second half of 2013 instead of the second quarter. If this delay occurs, it would lead to a material sequential decline in net sales and earnings per share for the second quarter of 2013.
If the ABW projects close in the second half of 2013, First Solar expects a corresponding material increase in net sales and earnings per share for that period, offsetting the expected Q2 decline. This highlights the company's reasoning for encouraging investors to focus on full-year guidance.
No, the company is reaffirming its full-year 2013 guidance. While there might be a shift in revenue and earnings recognition between quarters due to project sale timing, the overall projected financial performance for the entire year remains unchanged.