We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Canadian Solar (CSIQ) Q3 Earnings & Sales Lag, Down Y/Y
Read MoreHide Full Article
Canadian Solar Inc. (CSIQ - Free Report) reported adjusted third-quarter 2019 earnings of 66 cents per share, which missed the Zacks Consensus Estimate of 88 cents by 25%. The figure also declined 31.3% from the year-ago level.
GAAP earnings came in at 96 cents per share in the quarter under review compared with $1.04 in third-quarter 2018.
Total Revenues
This solar cell manufacturer’s total revenues of $759.9 million lagged the Zacks Consensus Estimate of $798 million by 4.8%. The top line also declined 1.1% from $768 million reported in third-quarter 2018.
The year-over-year decline was due lower revenues from the sale of solar power plants.
Canadian Solar Inc. Price, Consensus and EPS Surprise
Solar module shipments in the quarter totaled 2,387 megawatts (MW), which exceeded management’s guided range of 2.2-2.3 gigawatt (GW). Solar module shipments recognized in third-quarter revenues totaled 2,156 MW, improving 41.7% from 1,521 MW in the prior-year period.
Gross margin was 23% in the quarter (excluding AD and CVD benefits) compared with 25% in third-quarter 2018.
Total operating expenses were $118.8 million, up 13.7% year over year. The increase in operating costs in the reported quarter was due to higher selling expenses, general and administrative expenses, and research and development expenses.
Interest expenses were $19.2 million, down 7.2% from $20.7 million recorded in the year-ago period.
Financial Update
As of Sep 30, 2019, cash and cash equivalents totaled $526.2 million, up from $444.3 million on Dec 31, 2018.
Long-term borrowings as of Sep 30, 2019 were $525.9 million, up from $393.6 million on Dec 31, 2018.
Guidance
For fourth-quarter 2019, Canadian Solar expects shipments in the range of 2.3-2.4 GW. This guidance includes approximately 190 MW of shipments to its utility-scale solar power projects that may not be recognized as revenues in the fourth quarter. Total revenues are projected within $850-$880 million, while gross margin is expected in the band of 19-21%.
For 2019, Canadian Solar reiterated its guidance for total module shipments in the range of 8.4-8.5 GW. Total revenues for the year are expected in the range of $3.13-$3.16 billion.
SunPower Corp. (SPWR - Free Report) reported adjusted earnings of 22 cents per share in third-quarter 2019 against the Zacks Consensus Estimate of a loss of a penny.
Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2019 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents by 20%.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported third-quarter 2019 adjusted earnings of $1.21 per share, which surpassed the Zacks Consensus Estimate of 99 cents by 22.2%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
Image: Bigstock
Canadian Solar (CSIQ) Q3 Earnings & Sales Lag, Down Y/Y
Canadian Solar Inc. (CSIQ - Free Report) reported adjusted third-quarter 2019 earnings of 66 cents per share, which missed the Zacks Consensus Estimate of 88 cents by 25%. The figure also declined 31.3% from the year-ago level.
GAAP earnings came in at 96 cents per share in the quarter under review compared with $1.04 in third-quarter 2018.
Total Revenues
This solar cell manufacturer’s total revenues of $759.9 million lagged the Zacks Consensus Estimate of $798 million by 4.8%. The top line also declined 1.1% from $768 million reported in third-quarter 2018.
The year-over-year decline was due lower revenues from the sale of solar power plants.
Canadian Solar Inc. Price, Consensus and EPS Surprise
Canadian Solar Inc. price-consensus-eps-surprise-chart | Canadian Solar Inc. Quote
Operational Update
Solar module shipments in the quarter totaled 2,387 megawatts (MW), which exceeded management’s guided range of 2.2-2.3 gigawatt (GW). Solar module shipments recognized in third-quarter revenues totaled 2,156 MW, improving 41.7% from 1,521 MW in the prior-year period.
Gross margin was 23% in the quarter (excluding AD and CVD benefits) compared with 25% in third-quarter 2018.
Total operating expenses were $118.8 million, up 13.7% year over year. The increase in operating costs in the reported quarter was due to higher selling expenses, general and administrative expenses, and research and development expenses.
Interest expenses were $19.2 million, down 7.2% from $20.7 million recorded in the year-ago period.
Financial Update
As of Sep 30, 2019, cash and cash equivalents totaled $526.2 million, up from $444.3 million on Dec 31, 2018.
Long-term borrowings as of Sep 30, 2019 were $525.9 million, up from $393.6 million on Dec 31, 2018.
Guidance
For fourth-quarter 2019, Canadian Solar expects shipments in the range of 2.3-2.4 GW. This guidance includes approximately 190 MW of shipments to its utility-scale solar power projects that may not be recognized as revenues in the fourth quarter. Total revenues are projected within $850-$880 million, while gross margin is expected in the band of 19-21%.
For 2019, Canadian Solar reiterated its guidance for total module shipments in the range of 8.4-8.5 GW. Total revenues for the year are expected in the range of $3.13-$3.16 billion.
Zacks Rank
Canadian Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
SunPower Corp. (SPWR - Free Report) reported adjusted earnings of 22 cents per share in third-quarter 2019 against the Zacks Consensus Estimate of a loss of a penny.
Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2019 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents by 20%.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported third-quarter 2019 adjusted earnings of $1.21 per share, which surpassed the Zacks Consensus Estimate of 99 cents by 22.2%.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>