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Canadian Solar (CSIQ) Beats on Q2 Earnings and Revenues
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Solar cell manufacturer Canadian Solar Inc. (CSIQ - Free Report) reported second-quarter earnings of 68 cents per share, beating the Zacks Consensus Estimate of 40 cents by a whopping 70%. Reported earnings also surged 119.4% from the year-ago tally of 31 cents.
Total Revenue
Canadian Solar posted second-quarter total revenue of $805.9 million, surpassing the Zacks Consensus Estimate of $711 million by 13.3%. Revenues were also up 26.6% from $636.7 million reported in the prior-year quarter.
Of the total revenue, the American markets comprised 47.6%, Asia represented 39.5% and the European and other markets contributed 12.9%, compared with the respective year-ago contributions of 47.6%, 45.5% and 6.9%.
Operational Update
Solar module shipments in the reported quarter totaled 1,290 megawatts (“MW”), up 59.5% from the year-ago level of 809 MW. The figure also surpassed management’s guidance range of 1,200–1,250 MW.
Gross profit was $138.5 million, up 43.5% from the year-ago profit level of $96.5 million. Gross margin was 17.2% in the quarter, compared with 15.2% in the prior-year quarter.
Total operating expenses were $98.9 million in the quarter, up 54.4%. Operating expenses increased due to higher general and administrative expenses.
Selling expenses totaled $33.9 million in the reported quarter, up 5%. General and administrative expenses were $60.0 million, up 118.1%. Research and development expenses were $5.1 million, compared with $4.3 million a year ago.
Interest expenses were $11.9 million, down from the year-ago level of $12.9 million.
As of Jun 30, 2016, cash and cash equivalents were $495.1 million, down from $553.1 million as of Dec 31, 2015.
Long-term debt as of Jun 30, 2016 was $828.5 million, up from $606.6 million as of Dec 31, 2015.
Guidance
For the third quarter of 2016, Canadian Solar expects shipments of 1,200 MW to 1,300 MW. Total revenue is expected in the range of $660 million to $710 million, with gross margin of 14–16%.
For the full year, Canadian Solar reiterated its total module shipments expectation in the range of 5.4–5.5 gigawatts. Total revenue is still expected to be in the range of $3.0 billion to $3.2 billion.
Peer Releases
SolarCity Corp. , the largest U.S. rooftop solar installer, posted adjusted loss of $2.32 per share in the second quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.43. However, the figure was much wider than the year-ago loss of $1.61, thanks to the company’s rising expenses.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2016 earnings of 87 cents a share, beating the Zacks Consensus Estimate of 58 cents by 50%. The reported number also surged 67.3% from the prior-year figure of 52 cents on the back of higher sales and gross profits.
SunPower Corp. (SPWR - Free Report) reported second-quarter 2016 adjusted loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents by 6.5%. In the year-ago quarter, the company had reported earnings of 9 cents.
Our Take
Canadian Solar is working on improving both module sales and the downstream energy business. The company has the potential to tap into the growing solar markets of Asia. As of Jun 30, 2016, Canadian Solar had late-stage projects totaling 121 megawatt-peak (“MWp”) in China and 576 MWp in Japan. Solar plants in operation totaled 218.0 MWp in China and 21.0 MWp in Japan.
Zacks Rank
Canadian Solar presently carries a Zacks Rank #4 (Sell).
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Canadian Solar (CSIQ) Beats on Q2 Earnings and Revenues
Solar cell manufacturer Canadian Solar Inc. (CSIQ - Free Report) reported second-quarter earnings of 68 cents per share, beating the Zacks Consensus Estimate of 40 cents by a whopping 70%. Reported earnings also surged 119.4% from the year-ago tally of 31 cents.
Total Revenue
Canadian Solar posted second-quarter total revenue of $805.9 million, surpassing the Zacks Consensus Estimate of $711 million by 13.3%. Revenues were also up 26.6% from $636.7 million reported in the prior-year quarter.
Of the total revenue, the American markets comprised 47.6%, Asia represented 39.5% and the European and other markets contributed 12.9%, compared with the respective year-ago contributions of 47.6%, 45.5% and 6.9%.
Operational Update
Solar module shipments in the reported quarter totaled 1,290 megawatts (“MW”), up 59.5% from the year-ago level of 809 MW. The figure also surpassed management’s guidance range of 1,200–1,250 MW.
Gross profit was $138.5 million, up 43.5% from the year-ago profit level of $96.5 million. Gross margin was 17.2% in the quarter, compared with 15.2% in the prior-year quarter.
Total operating expenses were $98.9 million in the quarter, up 54.4%. Operating expenses increased due to higher general and administrative expenses.
Selling expenses totaled $33.9 million in the reported quarter, up 5%. General and administrative expenses were $60.0 million, up 118.1%. Research and development expenses were $5.1 million, compared with $4.3 million a year ago.
Interest expenses were $11.9 million, down from the year-ago level of $12.9 million.
CANADIAN SOLAR Price, Consensus and EPS Surprise
CANADIAN SOLAR Price, Consensus and EPS Surprise | CANADIAN SOLAR Quote
Financial Update
As of Jun 30, 2016, cash and cash equivalents were $495.1 million, down from $553.1 million as of Dec 31, 2015.
Long-term debt as of Jun 30, 2016 was $828.5 million, up from $606.6 million as of Dec 31, 2015.
Guidance
For the third quarter of 2016, Canadian Solar expects shipments of 1,200 MW to 1,300 MW. Total revenue is expected in the range of $660 million to $710 million, with gross margin of 14–16%.
For the full year, Canadian Solar reiterated its total module shipments expectation in the range of 5.4–5.5 gigawatts. Total revenue is still expected to be in the range of $3.0 billion to $3.2 billion.
Peer Releases
SolarCity Corp. , the largest U.S. rooftop solar installer, posted adjusted loss of $2.32 per share in the second quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.43. However, the figure was much wider than the year-ago loss of $1.61, thanks to the company’s rising expenses.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2016 earnings of 87 cents a share, beating the Zacks Consensus Estimate of 58 cents by 50%. The reported number also surged 67.3% from the prior-year figure of 52 cents on the back of higher sales and gross profits.
SunPower Corp. (SPWR - Free Report) reported second-quarter 2016 adjusted loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents by 6.5%. In the year-ago quarter, the company had reported earnings of 9 cents.
Our Take
Canadian Solar is working on improving both module sales and the downstream energy business. The company has the potential to tap into the growing solar markets of Asia. As of Jun 30, 2016, Canadian Solar had late-stage projects totaling 121 megawatt-peak (“MWp”) in China and 576 MWp in Japan. Solar plants in operation totaled 218.0 MWp in China and 21.0 MWp in Japan.
Zacks Rank
Canadian Solar presently carries a Zacks Rank #4 (Sell).
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