Canadian Solar Second Quarter Earnings Sneak Peek

Canadian Solar Inc. (NASDAQ:CSIQ) will unveil its latest earnings on Wednesday, August 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 net loss of 30 cents per share, up from net income of 24 cents in the year-earlier quarter. During the past three months, the average estimate has moved up from a loss of 44 cents. Between one and three months ago, the average estimate moved up. It has risen from a loss of 32 cents during the last month.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the first quarter, the company reported a loss of 49 cents per share versus a mean estimate of net loss of 52 cents per share. In the fourth quarter of the last fiscal year, the company missed estimates by $1.02.

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A Look Back: In the first quarter, the company swung to a loss of $21.3 million (49 cents a share) from a profit of $5.9 million (13 cents) a year earlier, but beat analyst expectations. Revenue fell 26.5% to $325.8 million from $443.4 million.

Wall St. Revenue Expectations: On average, analysts predict $393.9 million in revenue this quarter, a decline of 18.2% from the year-ago quarter. Analysts are forecasting total revenue of $1.8 billion for the year, a decline of 5.3% from last year’s revenue of $1.9 billion.

Stock Price Performance: Between August 3, 2012 and August 9, 2012, the stock price rose 39 cents (15.3%), from $2.55 to $2.94. The stock price saw one of its best stretches over the last year between April 24, 2012 and May 1, 2012, when shares rose for six straight days, increasing 12.1% (+39 cents) over that span. It saw one of its worst periods between July 18, 2012 and July 30, 2012 when shares fell for nine straight days, dropping 32% (-$1.24) over that span.

Key Stats:

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 4.7% in the the fourth quarter of the last fiscal year after dropping in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.04 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.05 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 9.6% to $1.36 billion while assets rose 8.6% to $1.41 billion.

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

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

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