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Canadian Solar Inc. (CSIQ - Free Report) is in a tough industry as global demand has fallen resulting in lower prices. This Zacks Rank #5 (Strong Sell) has seen its 2017 estimates cut in recent weeks.
Canadian Solar is one of the world's largest solar power companies. It makes solar photovoltaic modules and provides solar energy solutions.
A Fourth Quarter Miss
On March 21, Canadian Solar reported its fourth quarter results and missed on the Zacks Consensus Estimate by 5 cents. Earnings were $0.24 compared to the consensus of $0.29.
Total solar module shipments were a record high at 1,612 MW, of which 1,581 MW were recognized in revenue, compared to 1,161 MW recognized in revenue in the third quarter of 2016.
Net revenue was $668.4 million up from $657.3 million in the third quarter of 2016.
"Despite strong demand levels, our revenue for both the fourth quarter and full year was lower compared to the prior year's periods due to the industry-wide declines in average selling price that have been persistent all year," said Dr. Shawn Qu, Chairman and Chief Executive Officer.
Full Year Estimates Cut
Despite the record high module shipments, the analysts cut full year estimates due to the weak selling prices.
5 estimates were cut in the last 30 days with 1 cut in the last week.
The 2017 Zacks Consensus Estimate has fallen to $1.84 from $2.15 over the last month.
That's still 14.8% earnings growth, however.
Shares On a Downward Slide
It's been tough in the solar industry.
Shares of Canadian Solar have been sliding for the last 2 years and continue to trade near those 2-year lows.
But they're also cheap. Canadian Solar has a forward P/E of just 7.3.
It also has quite a bit of cash on hand, holding $1 billion in cash and cash equivalents as of Dec 31, 2016 compared to $986 million at the end of the third quarter 2016.
But the industry is out of favor as prices remain low.
If you really must buy a solar stock, consider First Solar Inc. (FSLR - Free Report) or JA Solar Holdings , both of which are Zacks Rank #3 (Hold) stocks.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
Image: Bigstock
Bear of the Day: Canadian Solar (CSIQ)
Canadian Solar Inc. (CSIQ - Free Report) is in a tough industry as global demand has fallen resulting in lower prices. This Zacks Rank #5 (Strong Sell) has seen its 2017 estimates cut in recent weeks.
Canadian Solar is one of the world's largest solar power companies. It makes solar photovoltaic modules and provides solar energy solutions.
A Fourth Quarter Miss
On March 21, Canadian Solar reported its fourth quarter results and missed on the Zacks Consensus Estimate by 5 cents. Earnings were $0.24 compared to the consensus of $0.29.
Total solar module shipments were a record high at 1,612 MW, of which 1,581 MW were recognized in revenue, compared to 1,161 MW recognized in revenue in the third quarter of 2016.
Net revenue was $668.4 million up from $657.3 million in the third quarter of 2016.
"Despite strong demand levels, our revenue for both the fourth quarter and full year was lower compared to the prior year's periods due to the industry-wide declines in average selling price that have been persistent all year," said Dr. Shawn Qu, Chairman and Chief Executive Officer.
Full Year Estimates Cut
Despite the record high module shipments, the analysts cut full year estimates due to the weak selling prices.
5 estimates were cut in the last 30 days with 1 cut in the last week.
The 2017 Zacks Consensus Estimate has fallen to $1.84 from $2.15 over the last month.
That's still 14.8% earnings growth, however.
Shares On a Downward Slide
It's been tough in the solar industry.
Shares of Canadian Solar have been sliding for the last 2 years and continue to trade near those 2-year lows.
But they're also cheap. Canadian Solar has a forward P/E of just 7.3.
It also has quite a bit of cash on hand, holding $1 billion in cash and cash equivalents as of Dec 31, 2016 compared to $986 million at the end of the third quarter 2016.
But the industry is out of favor as prices remain low.
If you really must buy a solar stock, consider First Solar Inc. (FSLR - Free Report) or JA Solar Holdings , both of which are Zacks Rank #3 (Hold) stocks.
Zacks' 2017 IPO Watch List
Before looking into the stocks mentioned above, you may want to get a head start on potential tech IPOs that are popping up on Zacks' radar. Imagine being in the first wave of investors to jump on a company with almost unlimited growth potential? This Special Report gives you the current scoop on 5 that may go public at any time.
One has driven from 0 to a $68 billion valuation in 8 years. Four others are a little less obvious but already show jaw-dropping growth. Download this IPO Watch List today for free >>