Canadian Solar Inc. (CSIQ - Free Report) reported third-quarter 2018 earnings of $1.09 per share, which outpaced the Zacks Consensus Estimate of 46 cents by a massive 137%. The company reported earnings of 22 cents per share in the year-ago quarter.
In the reported quarter, total revenues of this solar cell manufacturer came in at $768 million, which missed the Zacks Consensus Estimate of $806.1 million by 4.7%. Further, the top line declined 15.8% from $912.2 million reported in third-quarter 2017.
Solar module shipments in the quarter totaled 1,590 megawatts (MW), down 6.5% from the second quarter’s shipment of 1,700 MW. The figure came within management’s guided range of 1.50-1.60 gigawatt (GW).
Gross profit was $200.4 million, up 25.4% from the year-ago level of $159.8 million. Gross margin was 25% in the quarter (excluding the CVD reversal benefits). Including the benefits, gross margin was 26.1% compared with 17.5% in the third quarter of 2017.
Total operating expenses amounted to $104.5 million, up 2.4% year over year. Selling expenses totaled $38.4 million, down 10.3% year over year. General and administrative expenses were $59 million, up 10.4% year over year. Research and development expenses summed $10.1 million compared with $7.3 million a year ago.
Interest expenses were $26.8 million, down from $33.7 million recorded a year ago.
As of Sep 30, 2018, cash and cash equivalents grossed $519.6 million, down from $561.7 million as of Dec 31, 2017.
Long-term debt as of Sep 30, 2018 was $120.2 million, significantly down from $404.3 million as of Dec 31, 2017.
During the reported quarter, Canadian Solar’s won a contract to supply 164 MW of photovoltaic modules to the 350 MWp Escatrón Solar power project owned by COBRA Group — a subsidiary of ACS Group in Spain. It also secured a Victorian government support agreement for its greenfield 100MWac Carwarp Solar Project in Australia.
Moreover, Canadian Solar entered into a joint venture with ET Energy — a global clean energy developer and operator — to jointly provide EPC services for two solar power projects totaling 132 MWp in South Africa for BioTherm Energy.
For fourth-quarter 2018, Canadian Solar expects shipments in the range of 1.67-1.72 GW, including approximately 170 MW of shipments to the company's utility-scale solar power projects. Total revenues are projected in the band of $690-$800 million along with gross margin of 24-26%.
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.
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