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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 2022 results on May 24, before market open.

In the last reported quarter, the company delivered a negative earnings surprise of 55.26%. In the trailing four quarters, the company came up with an earnings surprise of 66.18%, on average.

Factors at Play

With the increasing demand for solar projects, Canadian Solar continues to benefit from project monetization. The company is expected to have successfully monetized both solar and battery storage projects in the first quarter as well. Revenues recognized from such sales must have contributed to the company’s top line 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 an increase in average selling price (ASP) for modules. This must have boosted Canadian Solar’s Q1 top line, backed by strong module shipment volumes.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.29 billion, suggesting an improvement of 18.5% from the figure reported in the year-ago quarter.

Continued module price appreciation is expected to have boosted the company’s gross margin in the first quarter, which in turn must have benefited its quarterly earnings. However, factors like higher transportation costs, longer shipping schedules and higher material costs have been affecting Canadian Solar’s bottom line and the same is likely to have continued in Q1 as well.

The Zacks Consensus Estimate for Q1 stands at a loss of 17 cents per share, implying a significant deterioration from earnings of 36 cents generated in the year-ago quarter.

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

SunPower Corporation (SPWR - Free Report) reported first-quarter 2022 adjusted earnings of 2 cents per share, which lagged the Zacks Consensus Estimate of 3 cents. The bottom line also marked a deterioration from the year-ago quarter’s earnings of 5 cents per share.

During the quarter under review, SunPower’s adjusted revenues came in at $336.1 million, while its GAAP revenues were $350.3 million. Revenues surpassed the Zacks Consensus Estimate of $334 million by 0.7%.

Enphase Energy (ENPH - Free Report) reported first-quarter 2022 adjusted earnings of 79 cents per share, which improved 41.1% from 56 cents reported in the prior-year quarter. The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents.

Enphase Energy’s first-quarter revenues of $441.3 million beat the Zacks Consensus Estimate of $434 million by 1.7%. ENPH’s top line soared 46.2% from the year-ago quarter’s $301.8 million.

First Solar, Inc. (FSLR - Free Report) reported first-quarter 2022 loss of 41 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line deteriorated significantly from the prior-year quarter’s earnings of $1.96 per share.

First Solar’s first-quarter sales were $367 million, which lagged the Zacks Consensus Estimate of $567.4 million by 35.3%. FSLR’s top line also declined 54.3% from the year-ago quarter’s $803.4 million.