Canadian Solar Inc. (CSIQ - Free Report) reported adjusted second-quarter 2020 earnings of 9 cents per share, which surpassed the Zacks Consensus Estimate of break-even earnings. In the year-ago quarter, the company had reported adjusted earnings of 77 cents per share.
GAAP earnings came in at 34 cents per share in the quarter under review compared with $1.04 in second-quarter 2019.
Canadian Solar’s total revenues of $695.8 million outpaced the Zacks Consensus Estimate of $661 million by 5.2%. Net revenues of $695.8 million exceeded the guidance of $630-$680 million.
The top line, however, plunged 32.9% from $1,036.3 million reported in second-quarter 2019. The year-over-year decline can be attributed to lower average module selling prices and limited project sales in the reported quarter.
Solar module shipments in the quarter totaled 2,905 megawatts (MW), up from 2,214 MW in the first quarter of 2020 and 2,143 MW in the second quarter of 2019. Growth in shipments was driven by moderate market share gains.
Gross profit amounted to $147 million, down 19.7% from the year-ago quarter’s $183 million. Gross margin was 18.2% in the quarter (excluding the AD and CVD benefits). Including the benefits, gross margin was 21.2% compared with 17.6% in the second quarter of 2019.
Total operating expenses were $101.7 million, down 16.5% year over year. Selling expenses summed $53.5 million, up 17.9% year over year. General and administrative expenses summed $46.4 million, down 29.5% year over year. Research and development expenses were $10.9 million compared with $12.1 million in the year-ago period.
Income tax expenses in the second quarter of 2020 were $9 million compared with the income tax expenses of $14 million in the second quarter of 2019.
Interest expenses were $17 million, down from $20.7 million recorded in the year-ago period.
Canadian Solar Inc. Price, Consensus and EPS Surprise
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