Canadian Solar Inc. Third Quarter Earnings Sneak Peek

Canadian Solar Inc. (NASDAQ:CSIQ) will unveil its latest earnings on Tuesday, November 22, 2011. 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 net loss of 51 cents per share, a swing from profit of 47 cents in the year earlier quarter. During the past three months, the average estimate has moved down from 10 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 8 cents during the last month. Analysts are projecting a loss of 42 cents per share versus net income of $1.16 last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 3 cents, coming in at profit of 24 cents per share against a mean estimate of net income of 29 cents. The company topped expectations in the first quarter.

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Wall St. Revenue Expectations: On average, analysts predict $496.9 million in revenue this quarter, a rise of 31.7% from the year ago quarter. Analysts are forecasting total revenue of $1.87 billion for the year, a rise of 24.7% from last year’s revenue of $1.5 billion.

Analyst Ratings: Analysts seem relatively indifferent about Canadian Solar with seven of eight analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose more than twofold to $7.1 million (16 cents a share) from $3.2 million (7 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 46.6% to $481.8 million from $328.7 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 58.3%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 78.1% from the year earlier quarter.

Competitors to Watch: First Solar, Inc. (NASDAQ:FSLR), Trina Solar Limited (NYSE:TSL), SunPower Corporation (NASDAQ:SPWRA), JA Solar Hldgs. Co., Ltd. (NASDAQ:JASO), China Sunergy Co., Ltd. (NASDAQ:CSUN), Suntech Power Hldgs. Co., Ltd. (NYSE:STP), Hanwha Solarone Co Ltd (HSOL), Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE), LDK Solar Co., Ltd (NYSE:LDK), and Evergreen Solar, Inc. (NASDAQ:ESLR).

Stock Price Performance: During August 23, 2011 to November 16, 2011, the stock price had fallen $3.79 (-61.7%) from $6.14 to $2.35. The stock price saw one of its best stretches over the last year between June 20, 2011 and June 27, 2011 when shares rose for six-straight days, rising 15.7% (+$1.54) over that span. It saw one of its worst periods between July 22, 2011 and August 4, 2011 when shares fell for 10-straight days, falling 21.8% (-$2.10) over that span. Shares are down $10.04 (-81%) year to date.

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

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