First Solar Falls After Q2 Report; Cuts Full-Year Outlook

First Solar (NASDAQ: FSLR) released its fiscal second-quarter earnings results after the closing bell on Tuesday.

The company badly missed both Wall Street earnings and revenue estimates and cut its outlook for fiscal 2013. In late trade, the stock was last down a little better than 9 percent to $42.30.

Management Commentary

“Although we worked diligently in the quarter to close the sale of the ABW projects, the sale was delayed and consequently, as we highlighted on our first quarter of 2013 earnings call, such delay caused a decline in our net sales and earnings for the second quarter from expectations. We still expect the closing of the ABW sale to occur in the current year, resulting in a corresponding increase in net sales and earnings in the second half of 2013,” said Jim Hughes, CEO of First Solar.

Related: Why are billionaires snapping up newspapers?

Fiscal Q2 Results

First Solar reported net income of $33.6 million or $0.37 per share, compared to $111.0 million or $1.27 per share, in last year's corresponding period.

On an adjusted basis, the company earned $35.3 million or $0.39 per share. This missed Wall Street analysts' consensus EPS estimates of $0.52. The shortfall was primarily caused by a delay in the sale of the company's ABW projects.

Revenue in the quarter was $519.76 million from $957.33 million a year ago. This also missed Wall Street consensus revenue expectations of $721.08 million.

Full-Year Guidance Cut

For fiscal 2013, First Solar now expects EPS of $3.75 to $4.25 on sales of $3.6 billion to $3.8 billion.

Previously, the company guided for EPS of $4.00 to $4.50 on sales of $3.8 billion to $4.0 billion. Analysts currently expect the company to report EPS of $4.14 on sales of $3.83 billion for the full-year.