Canadian Solar Inc. (CSIQ - Free Report) reported fourth-quarter 2017 earnings of $1.01 per share, missing the Zacks Consensus Estimate of $1.03 by 2%. The company had reported a loss of 23 cents per share in the year-ago period.
Total Revenues
Solar cell manufacturer, Canadian Solar posted total revenues of $1.1 billion in the quarter, which also missed the Zacks Consensus Estimate of $1.5 billion by 24.8%. The top line was however up a solid 65.9% from $668.4 million reported in fourth-quarter 2016.
Operational Update
Solar module shipments in the quarter totaled 1,831 megawatts (MW), up 13.6%, from the year-ago level of 1,612 MW. The figure exceeded management’s guidance range of 1,720-1,820 MW.
Gross profit was $218.6 million, up 346.1%, from the year-ago level of $49 million. Gross margin was 19.7% in the quarter compared with 7.3% in the prior-year quarter.
Total operating expenses were $88.4 million, up 45.6% year over year. Selling expenses totaled $39.9 million, down 6.6% year over year. General and administrative expenses were $69.7 million, up 10.8% year over year. Research and development expenses were $8.6 million compared with $3.2 million a year ago.
Interest expenses were $33.5 million, up from $22.9 million recorded a year ago.
Financial Update
As of Dec 31, 2017, cash and cash equivalents were $561.7 million, up from $511 million as of Dec 31, 2016.
Long-term debt as of Dec 31, 2017, was $404.3 million, down from $493.5 million as of Dec 31, 2016.
Guidance
For first-quarter 2018, Canadian Solar expects shipments in the range of 1.30-1.35 gigawatts (GW). Total revenues are projected in the range of $1.37-$1.40 billion along with gross margin in the 10-12% range.
Canadian Solar’s total module shipments in 2018 are anticipated to be in the range of 6.6-7.1 GW. Total revenues are expected to be in the range of $4.4-$4.6 billion.
Zacks Rank & Key Pick
Canadian Solar carries a Zacks Rank #5 (Strong Sell).
A better-ranked stock in the same place is SolarEdge Technologies (SEDG - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SolarEdge delivered an average positive earnings surprise of 31.99% in trailing four quarters. It has a solid long-term EPS growth rate of 24%.
Peer Releases
First Solar (FSLR - Free Report) reported fourth-quarter 2017 adjusted loss of 25 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 32 cents by 21.9%.
Enphase Energy (ENPH - Free Report) delivered fourth-quarter 2017 adjusted earnings of 1 cent per share, which compares favorably with the Zacks Consensus Estimate of breakeven earnings.
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Canadian Solar Inc. (CSIQ - Free Report) reported fourth-quarter 2017 earnings of $1.01 per share, missing the Zacks Consensus Estimate of $1.03 by 2%. The company had reported a loss of 23 cents per share in the year-ago period.
Total Revenues
Solar cell manufacturer, Canadian Solar posted total revenues of $1.1 billion in the quarter, which also missed the Zacks Consensus Estimate of $1.5 billion by 24.8%. The top line was however up a solid 65.9% from $668.4 million reported in fourth-quarter 2016.
Operational Update
Solar module shipments in the quarter totaled 1,831 megawatts (MW), up 13.6%, from the year-ago level of 1,612 MW. The figure exceeded management’s guidance range of 1,720-1,820 MW.
Gross profit was $218.6 million, up 346.1%, from the year-ago level of $49 million. Gross margin was 19.7% in the quarter compared with 7.3% in the prior-year quarter.
Total operating expenses were $88.4 million, up 45.6% year over year. Selling expenses totaled $39.9 million, down 6.6% year over year. General and administrative expenses were $69.7 million, up 10.8% year over year. Research and development expenses were $8.6 million compared with $3.2 million a year ago.
Interest expenses were $33.5 million, up from $22.9 million recorded a year ago.
Financial Update
As of Dec 31, 2017, cash and cash equivalents were $561.7 million, up from $511 million as of Dec 31, 2016.
Long-term debt as of Dec 31, 2017, was $404.3 million, down from $493.5 million as of Dec 31, 2016.
Guidance
For first-quarter 2018, Canadian Solar expects shipments in the range of 1.30-1.35 gigawatts (GW). Total revenues are projected in the range of $1.37-$1.40 billion along with gross margin in the 10-12% range.
Canadian Solar’s total module shipments in 2018 are anticipated to be in the range of 6.6-7.1 GW. Total revenues are expected to be in the range of $4.4-$4.6 billion.
Zacks Rank & Key Pick
Canadian Solar carries a Zacks Rank #5 (Strong Sell).
A better-ranked stock in the same place is SolarEdge Technologies (SEDG - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SolarEdge delivered an average positive earnings surprise of 31.99% in trailing four quarters. It has a solid long-term EPS growth rate of 24%.
Peer Releases
First Solar (FSLR - Free Report) reported fourth-quarter 2017 adjusted loss of 25 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 32 cents by 21.9%.
Enphase Energy (ENPH - Free Report) delivered fourth-quarter 2017 adjusted earnings of 1 cent per share, which compares favorably with the Zacks Consensus Estimate of breakeven earnings.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
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.
Free: See Our Top Stock and 4 Runners Up >>
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