Canadian Solar Earnings: Revenue Falls After Four Straight Increases

Canadian Solar Inc. (NASDAQ:CSIQ) reported its results for the first quarter. Canadian Solar designs, develops, manufactures, and sells solar cell and solar module products that convert sunlight into electricity.

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Canadian Solar Earnings Cheat Sheet for the First Quarter

Results: Reported a loss of $21.3 million (49 cents per diluted share) in the quarter. Canadian Solar Inc. had a net income of $5.9 million or 13 cents per share in the year-earlier quarter.

Revenue: Fell 26.5% to $325.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Canadian Solar Inc. beat the mean analyst estimate of a loss of 53 cents per share. It fell short of the average revenue estimate of $361.5 million.

Quoting Management: Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, remarked: “Canadian Solar continues to hit its stride as others fall by the wayside. We are highly confident in the prospects for our business and in our ability to drive further manufacturing efficiencies. We expect that our calculated efforts to invest in the areas of business and in the geographies where we see the greatest potential will help us to deliver improved results in the quarters ahead. We are benefiting from customers’ ongoing global shift to quality and to tier-one solar companies with global delivery and service capabilities. Our strong track record of performance combined with our unwavering commitment to providing our customers with innovative, high performance, fairly priced solar solutions differentiates Canadian Solar and we believe is helping us to gain market share in key solar markets worldwide. We have a stable balance sheet and excellent support from major financial institutions worldwide, which will allow us to continue to capture both major project opportunities and smaller scale customer wins.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter of the last fiscal year, which saw revenue rise 46.6%.

The company beat estimates last quarter after falling short in the previous two quarters. In the fourth quarter of the last fiscal year, it missed the mark by $1.02, and in the third quarter of the last fiscal year, it came in under estimates by 73 cents.

Looking Forward: Analysts seem more negative about the company’s results for the next quarter than two months ago. The average estimate for the second quarter has moved from a loss of 15 cents a share to a loss of 42 cents over the last sixty days. Down from a loss of 43 cents per share sixty days ago, the average estimate for the fiscal year is now a loss of $1.27.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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