Canadian Solar (CSIQ) to Report Q2 Earnings: What's in Store?

FSLR CSIQ ENPH SEDG

Canadian Solar Inc. (CSIQ - Free Report) is slated to report second-quarter 2023 results on Aug 22, before the opening bell.  

In the last reported quarter, the company delivered an earnings surprise of 147.92%. The company delivered a trailing four-quarter average earnings surprise of 106.28%.

Factors to Note

Solid module shipment driven by pent-up demand from customers across nearly all channels and regions is likely to have boosted Canadian Solar’s second-quarter top-line performance.

Notable project sales that result in significant project monetization, particularly in the United States, can also be expected to have contributed favorably to CSIQ’s revenues in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for revenues is pegged at $2.50 billion, indicating an 8.1% increase from the year-ago quarter’s level.

Declining input costs, owing to lowering polysilicon prices, along with reducing processing costs for the company are likely to have bolstered its second-quarter earnings. Declining shipping costs and stable logistics costs, a trend witnessed in recent times, might have also aided CSIQ’s bottom-line performance.  

However, foreign exchange fluctuation and lower average selling price for solar module might have had some adverse impact on the company’s overall earnings in the soon-to-be-reported quarter.    

The Zacks Consensus Estimate for second-quarter earnings is pegged at $1.52 per share, indicating a 42.1% improvement from the year-ago quarter’s figure.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Canadian Solar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Earnings ESP: CSIQ’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Canadian Solar currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Solar Releases

First Solar, Inc. (FSLR - Free Report) reported second-quarter 2023 earnings of $1.59 per share, which improved 205.8% from the prior-year quarter’s level of 52 cents. The Zacks Consensus Estimate for second-quarter earnings was pegged at 95 cents.

First Solar’s second-quarter net sales were $810.7 million, which beat the Zacks Consensus Estimate of $720 million by 12.6%. The top line also improved 30.6% from the year-ago quarter’s level of $620.9 million.

Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2023 adjusted earnings of $1.47 per share, indicating a 37.4% improvement from $1.07 reported in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.27 by 15.8%.

Enphase Energy’s second-quarter revenues of $711.1 million missed the Zacks Consensus Estimate of $727 million by 2.2%. However, the top line rose 34.1% from the prior-year quarter’s reported figure of $530.2 million.

SolarEdge Technologies, Inc. (SEDG - Free Report) reported adjusted earnings of $2.62 per share, which surpassed the Zacks Consensus Estimate of $2.55 by 2.8%. The bottom line also improved 175.8% from the prior-year quarter’s level of 95 cents.

The company’s quarterly revenues of $991.3 million outpaced the Zacks Consensus Estimate of $989 million by 0.2%. The top line also rose 36% from the year-ago quarter’s reported number of $727.8 million.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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