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Canadian Solar (CSIQ) to Post Q1 Earnings: What's in Store?

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Canadian Solar Inc. (CSIQ - Free Report) is set to report first-quarter 2021 results on May 20, before market open.

In the last reported quarter, the company delivered an earnings surprise of 120.00%. In the trailing four quarters, the company came up with an earnings surprise of 205.23%, on average.

Factors at Play

With increasing demand for solar projects, Canadian Solar has been benefiting from project monetization. Keeping up with this trend, in the first quarter, the company completed the sale of two operational projects totaling 61 MWp to Canadian Solar Infrastructure Fund as well as the 144 MWac Pflugerville Solar project to Duke Energy Renewables. Revenues recognized from these sales must have contributed favorably to the company’s top-line performance in the soon-to-be-reported quarter.

Canadian Solar Inc. Price and EPS Surprise

Canadian Solar Inc. Price and EPS Surprise

Canadian Solar Inc. price-eps-surprise | Canadian Solar Inc. Quote

 

With gradual economic recovery, the company has been witnessing increase in average selling price for modules. This must have pushed up its production rate, thereby shipment volumes and in turn revenues in the first quarter.

Notably, the Zacks Consensus Estimate for first-quarter revenues is pegged at $1.04 billion, suggesting an improvement of 25.7% from the figure reported in the year-ago quarter.

Sharp appreciation of the Chinese currency, RMB, relative to the U.S. dollar, is expected to have caused significant foreign exchange loss. As a result, with cost currency appreciation and revenue currency depreciation, the company’s margin might have got impacted in the first quarter. This in turn must have impacted Canadian Solar’s bottom-line performance in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for earnings per share stands at 28 cents, implying a deterioration of 80% from the year-ago period’s reported earnings of $1.40

Earnings Whispers

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 odds of an earnings surprise. But that’s not the case here, as you will see below.

Earnings ESP: Canadian Solar has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here.

Recent Solar Releases

Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents by 36.6%.

First Solar Inc. (FSLR - Free Report) reported first-quarter 2021 adjusted earnings of $1.96 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 96%.

SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2021 adjusted earnings of 98 cents per share, which missed the Zacks Consensus Estimate of $1.01 by 3%.

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