Canadian Solar Third Quarter Earnings Sneak Peek

Canadian Solar Inc. (NASDAQ:CSIQ) will unveil its latest earnings on Thursday, November 15, 2012. Canadian Solar designs, develops, manufactures, and sells solar cell and solar module products that convert sunlight into electricity.

Canadian Solar Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 58 cents per share, a narrower loss from the year-earlier quarter net loss of $1.24. During the past three months, the average estimate has moved down from a loss of 23 cents. Between one and three months ago, the average estimate moved down. It has risen from a loss of 63 cents during the last month.

Past Earnings Performance: Last quarter, the company fell short of estimates by 3 cents, coming in at net loss of 57 cents per share against a mean estimate of a loss of 30 cents. The company topped expectations in the first quarter.

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A Look Back: In the second quarter, the company swung to a loss of $25.5 million (59 cents a share) from a profit of $7.1 million (16 cents) a year earlier, missing analyst expectations. Revenue fell 27.7% to $348.2 million from $481.8 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 28.9% in revenue from the year-earlier quarter to $355.1 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.95 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 1.04 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 16% to $1.57 billion while assets rose 6.3% to $1.5 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 26.5% in the first quarter and dropped again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with three of four analysts surveyed giving that rating.

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

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