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Canadian Solar (CSIQ) Q3 Earnings Beat, Revenues Rise Y/Y

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Canadian Solar Inc. (CSIQ - Free Report) reported third-quarter adjusted earnings of 42 cents per share, which surpassed the Zacks Consensus Estimate of 18 cents by 133.3%.

Barring one-time items, Canadian Solar posted GAAP earnings of 52 cents compared with 15 cents generated in the prior-year quarter. 

Total Revenues

This solar cell manufacturer’s total revenues of $1,229.5 million missed the Zacks Consensus Estimate of $1,322 million by 7%. The top line however improved a solid 34.5% from $914.4 million reported in third-quarter 2020.

Canadian Solar Inc. Price, Consensus and EPS Surprise

Canadian Solar Inc. Price, Consensus and EPS Surprise

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

Operational Update

Solar module shipments in the quarter totaled 3.87 gigawatts (GW), which came in a bit below the mid-point of the guided range of 3.8-4.0 GW. This includes 173 megawatts (MWs) for the company's utility-scale solar power projects. Total module shipments increased 22% on a year-over-year basis.

Canadian Solar’s gross margin was 18.6% in the quarter, above the guided range of 14-16%.

Total operating expenses were $175.5 million, up 47.1% year over year. The increase was due to higher selling and distribution expenses as well as general and administrative expenses.

Interest expenses were $13.2 million, down from $17.9 million recorded in the year-ago period.

Financial Update

As of Sep 30, 2021, Canadian Solar’s cash and cash equivalents totaled $867.9 million, down from $1,178.8 million on Dec 31, 2020.

Long-term borrowings as of Sep 30, 2021 were $579.5 million, up from $446.1 million on Dec 31, 2020.

Guidance

For the fourth quarter of 2021, Canadian Solar expects total module shipments of 3.7-3.9 GW including approximately 250 MW of module shipments to its own projects. Total revenues are expected in the range of $1.5-$1.6 billion. The gross margin is expected between 14% and 16%.

The Zacks Consensus Estimate for fourth-quarter revenues, pegged at $1.95 billion, lies above the company guidance.

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.

Recent Solar Releases

First Solar (FSLR - Free Report) reported third-quarter 2021 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 33.3%. Its third-quarter sales were $584 million, which lagged the Zacks Consensus Estimate of $699 million by 16.5%.

First Solar still expects earnings to be $4.00-$4.60 per share on sales of $2.88-3.10 billion in 2021. First Solar carries a Zacks Rank #4 (Sell), at present. The stock has gained 26.2% in the past year.

Enphase Energy (ENPH - Free Report) reported third-quarter 2021 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%. Enphase Energy’s third-quarter revenues of $351.5 million beat the Zacks Consensus Estimate of $344.9 million by 1.9%.

For fourth-quarter 2021, Enphase Energy expects revenues of $390-$410 million. The company carries a Zacks Rank #3 at present. The stock has gained 103.7% in the past year.

SolarEdge Technologies (SEDG - Free Report) reported third-quarter adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.38 by 5.1%. SolarEdge’s revenues of $526.4 million in the third quarter missed the Zacks Consensus Estimate of $530 million by 0.6%.

For fourth-quarter 2021, SolarEdge expects revenues to be $530-$560 million. The company carries a Zacks Rank #3 at present. The stock has gained 52.6% in the past year.

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