Solar cell manufacturer, Canadian Solar Inc. (CSIQ - Free Report) , witnessed second-quarter 2017 adjusted loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 16 cents. In the year-ago quarter, the company posted earnings of 68 cents.
Barring the adjustments, the company posted an earnings of 63 cents per share.
Total Revenue
Canadian Solar recorded total revenue of $692.4 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $623 million by 11.1%. However, the top line was down 14.1% from $805.9 million reported in the prior-year quarter.
Of the total revenue, the American markets comprised 21.7%, Asia represented 65.3%, and the European and other markets contributed 13% compared with the respective year-ago contributions of 47.6%, 39.5% and 12.9%.
Operational Update
Solar module shipments in the quarter totaled 1,745 megawatts (MW), up 35.3%, from the year-ago level of 1,290 MW. The figure also exceeded management’s guidance range of 1,530 MW –1,580 MW.
Gross profit was $167.8 million, up 21.2%, from the year-ago level of $138.5 million. Gross margin was 24.2% in the quarter compared with 17.2% in the prior-year quarter.
Total operating expenses were $84.1 million, up 15% year over year. Operating expenses decreased as it recorded other operating income of $15.5 million.
Selling expenses totaled $39.3 million in the reported quarter, up 16.1%. General and administrative expenses were $53 million, slightly up from $52.9 million. Research and development expenses were $7.3 million compared with $5.1 million a year ago.
Interest expenses were $26.7 million, up from the year-ago level of $11.9 million.
Financial Update
As of Jun 30, cash and cash equivalents were $961.6 million, up from $511 million as of Dec 31, 2016.
Long-term debt as of Jun 30 was $273 million, down from $493.5 million as of Dec 31, 2016.
Guidance
For third-quarter 2017, Canadian Solar expects shipments in the band of 1.65−1.70 gigawatts (GW). Total revenue is projected in the range of $805−$825 million, along with gross margin of 15–17%.
Canadian Solar’s total module shipments in 2017 are still anticipated to be in the range of 6.0 GW–6.5 GW.
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.
Peer Releases
SunPower Corp. (SPWR - Free Report) incurred second-quarter 2017 loss of 39 cents per share, narrower than the Zacks Consensus Estimate of a loss of 63 cents. In the year-ago period, the company had witnessed a loss of 33 cents.
8point3 Energy Partners LP reported earnings of 12 cents per share in second-quarter fiscal 2017 (ended May 31, 2017), missing the Zacks Consensus Estimate of 16 cents by 25%.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2017 earnings of 64 cents a share. The Zacks Consensus Estimate was pegged at a loss of 4 cents. The reported figure declined 26.4% from the prior-year figure of 87 cents.
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Solar cell manufacturer, Canadian Solar Inc. (CSIQ - Free Report) , witnessed second-quarter 2017 adjusted loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 16 cents. In the year-ago quarter, the company posted earnings of 68 cents.
Barring the adjustments, the company posted an earnings of 63 cents per share.
Total Revenue
Canadian Solar recorded total revenue of $692.4 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $623 million by 11.1%. However, the top line was down 14.1% from $805.9 million reported in the prior-year quarter.
Of the total revenue, the American markets comprised 21.7%, Asia represented 65.3%, and the European and other markets contributed 13% compared with the respective year-ago contributions of 47.6%, 39.5% and 12.9%.
Operational Update
Solar module shipments in the quarter totaled 1,745 megawatts (MW), up 35.3%, from the year-ago level of 1,290 MW. The figure also exceeded management’s guidance range of 1,530 MW –1,580 MW.
Gross profit was $167.8 million, up 21.2%, from the year-ago level of $138.5 million. Gross margin was 24.2% in the quarter compared with 17.2% in the prior-year quarter.
Total operating expenses were $84.1 million, up 15% year over year. Operating expenses decreased as it recorded other operating income of $15.5 million.
Selling expenses totaled $39.3 million in the reported quarter, up 16.1%. General and administrative expenses were $53 million, slightly up from $52.9 million. Research and development expenses were $7.3 million compared with $5.1 million a year ago.
Interest expenses were $26.7 million, up from the year-ago level of $11.9 million.
Financial Update
As of Jun 30, cash and cash equivalents were $961.6 million, up from $511 million as of Dec 31, 2016.
Long-term debt as of Jun 30 was $273 million, down from $493.5 million as of Dec 31, 2016.
Guidance
For third-quarter 2017, Canadian Solar expects shipments in the band of 1.65−1.70 gigawatts (GW). Total revenue is projected in the range of $805−$825 million, along with gross margin of 15–17%.
Canadian Solar’s total module shipments in 2017 are still anticipated to be in the range of 6.0 GW–6.5 GW.
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.
Peer Releases
SunPower Corp. (SPWR - Free Report) incurred second-quarter 2017 loss of 39 cents per share, narrower than the Zacks Consensus Estimate of a loss of 63 cents. In the year-ago period, the company had witnessed a loss of 33 cents.
8point3 Energy Partners LP reported earnings of 12 cents per share in second-quarter fiscal 2017 (ended May 31, 2017), missing the Zacks Consensus Estimate of 16 cents by 25%.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2017 earnings of 64 cents a share. The Zacks Consensus Estimate was pegged at a loss of 4 cents. The reported figure declined 26.4% from the prior-year figure of 87 cents.
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If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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