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Canadian Solar Shares Fall on Soft Outlook, Blames Weather

By  +Follow March 5, 2014 2:45PM
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Shares of Canadian Solar (CSIQ) , one of the world’s biggest solar power companies, are trading lower on Wednesday after saying it swung to a profit in the fourth quarter, but provided a bleak outlook for the first quarter. Joining in with other solar firms, such as Trina Solar Ltd. (TSL) , Canadian Solar said severe weather conditions in North America slowed construction at projects, which will translate to lower revenue and gross margin in the first quarter.

For the quarter ended December 31, 2013, the Guelph, Ontario-based company reported net revenue of $519.5 million, up 76.2 percent from $294.8 million in the year prior quarter. On a GAAP basis, Canadian Solar earned $20.95 million, or 39 cents per share, versus a net loss of $104.99 million, or $2.43 per share, in Q4 2012. 

Wall Street was expecting profits of 49 cents per share on revenue of $512.95 million.

Despite coming up short of analyst predictions, it was the second straight quarter of profitability for Canadian Solar. Before shifting into the black in the third quarter last year, the company had posted losses in the nine previous quarters.

Canadian Solar has been shifting into building solar power plants, which brings higher margins than solely competing in the low-margin product space and it’s paying off. For all of 2013, Canadian Solar logged net income of $31.66 million, or 63 cents per share. In 2012, it had lost $195.47 million, or $4.53 per share.

"We are very pleased to have achieved our goal to return the Company to profitability in 2013, underscoring the successful execution of our strategy of expanding our higher margin total solutions business, and seeking profitable growth in our module business, rather than simply competing on MW volume and price,” said Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar, in a statement this morning.

Sales rising in China helped Canadian Solar’s financials. Solar module shipments to the Chinese market were 43 percent of all shipments in the fourth quarter, compared to 9.9 percent in the year prior quarter. Shipments to Japan represented 19.7 percent of total shipments, against 11.7 percent a year earlier.

Shares of CSIQ have been on a tear in the last year, rising a stellar 1,300 percent through Tuesday’s close from 52-week lows last March.

Wall Street was expecting more in the first quarter than what Canadian Solar forecast. The company expects total module shipments between 470 megawatts and 490 megawatts. That’s down from the 621 MW shipped last quarter. The arctic blast that has hit North America and Canada with unseasonably icy and snowy conditions has negatively affected sales and delayed construction at utility-scale projects in Canada, pushing that revenue and profits into the second and third quarter, according to the company. 

For the quarter, Canadian Solar now sees revenue in the range of $415 million to $430 million, down from the $510 million to $520 million previously forecast. The new guidance is well below the $517 million analysts expected.

Total panel shipments are expected to climb to the range of 2.5 GW to 2.7 GW in 2014, compared to 1.9 GW in 2013. Total sales are projected between $2.7 billion and $2.9 billion, from $1.65 billion last year, with about half of those sales derived from its total solutions business.

For the day, investors are focused on the earnings miss and guidance, not the overall growth. Shares are off by 11.2 percent in late afternoon trading at $38.77.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for CSIQ
Brute Force
21 Aug 14 12:35:10
A number of trades today long and (mostly) short $CSIQ... +496. Could have been easily double that if I had traded better.
Thom Johnson
21 Aug 14 12:31:15
The market is not helping short-term longs in $JRJC, $CSIQ, $FOLD, $EVRY or $DGLY into the close...so far.
Asiatrading
21 Aug 14 12:19:47
$CSIQ finally dropped... more coming?
Business News Watch
21 Aug 14 12:12:54
$CSIQ: Will Canadian Solar (CSIQ) Continue to Surge Higher? http://t.co/3NiVSAMalU http://t.co/r0fVVkO72M
Majestic
21 Aug 14 11:16:41
@stockspastor $CSIQ looking weak? What chart are you looking at? This thing hardly has shown any weakness. When drops, it rebounds.
Stocks Pastor
21 Aug 14 11:10:08
$CSIQ looking weak already. Looking for short opportunity soon. Cover $BITA short at $76 from $82. May go down further. I bailed.
WallStreet
21 Aug 14 11:06:22
Stocks High On Analysts Actions: $ALLY, $SLXP, $SCHW, $CSIQ -- http://t.co/wK67cYHSGh
Investors Hangout
21 Aug 14 10:18:27
DennyT: FFFC Industry $FFFC $ARIA $QTMM $CSIQ $XLK http://t.co/y8hhFm0E7G
Investors Hangout
21 Aug 14 10:18:14
DennyT: FFFC Industry $FFFC $ARIA $QTMM $CSIQ $XLK http://t.co/K9ToSjquKK
Stock News Headlines
21 Aug 14 10:13:37
$CSIQ: Video: SolarCity's Energy, Financing Rivals May Gain http://t.co/AaLoUwQrzy http://t.co/32BDFMajIj
Kunal Desai
21 Aug 14 10:02:24
$csiq ovred 34.75 lost 10 cents.. cant hold shorts too long in this market.. needed to take flush and then reshort
Media Sentiment
21 Aug 14 09:59:15
$CSIQ received a new alert. Find out why at http://t.co/WHJp8eTsSr #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 232
21 Aug 14 09:57:01
sold my $CSIQ swing short yesterday for a near $300 loss. i had a 34.60 avg. looks like i should've held another day
Kris Sidial
21 Aug 14 09:56:34
Ehhh not much in play for me today made a small $176 off of $JRJC scalped the morning breakout ..still playing $CSIQ http://t.co/5RMYgkNsnB
Market Int Center
21 Aug 14 09:55:24
Canadian Solar $CSIQ Showing Bullish Technicals With Support At $32.87 ( http://t.co/jEkRtDNkZF )
Investors Hangout
21 Aug 14 09:46:34
DennyT: CSIQ Bloomberg $CSIQ $MCD $TITXF $BBRY $APPZ http://t.co/vPUzakWvN1
Investors Hangout
21 Aug 14 09:46:31
DennyT: CSIQ Bloomberg $CSIQ $MCD $TITXF $BBRY $APPZ http://t.co/LjTX1upqlL
Albert Chitemyan
21 Aug 14 09:41:06
$CSIQ short seems to be working.... target ~32$
OTPicks.com
21 Aug 14 09:31:33
http://t.co/hjgLwIcNgz DennyT: CSIQ Bloomberg $CSIQ $MCD $TITXF $BBRY $APPZ: DennyT http://t.co/eUWNuJj2DF http://t.co/QzFp1WC0ss
OTPicks.com
21 Aug 14 09:31:31
http://t.co/QkCFZ8q0T8 DennyT: CSIQ Bloomberg $CSIQ $MCD $TITXF $BBRY $APPZ: DennyT http://t.co/he6frQ9h2p http://t.co/QkCFZ8q0T8
Extreme Stocks
21 Aug 14 09:24:13
DennyT: CSIQ Bloomberg $CSIQ $MCD $TITXF $BBRY $APPZ http://t.co/CETXCLNlLp
UplandsCapitalGroup
21 Aug 14 09:15:29
RT @modern_rock: $CSIQ wow low of days
UplandsCapitalGroup
21 Aug 14 09:15:14
RT @InvestorsLive: $CSIQ coming in hard now! -- I had nice size and $34.90s average .... then covered it up like an idiot, now less size bu…
Business News Now
21 Aug 14 09:13:40
$CSIQ: Nasdaq Leads Indexes As Solar, Biotechs Outperform http://t.co/fwpIBAKvph http://t.co/guq5wmpfy4
Nathan Michaud
21 Aug 14 09:02:07
$CSIQ coming in hard now! -- I had nice size and $34.90s average .... then covered it up like an idiot, now less size but great fade!
Kunal Desai
21 Aug 14 09:01:54
$csiq $spwr lods!
Modern Rock
21 Aug 14 09:01:52
$CSIQ wow low of days
Kunal Desai
21 Aug 14 08:43:28
$csiq took some short 34.6s think today is the day we fade here been up 6-7 days in row $spwr $fslr pretty weak
NYC Trader
21 Aug 14 08:34:26
$CSIQ nex round , $TSL cracks.
Stock Market News
21 Aug 14 08:14:13
$CSIQ: Will Canadian Solar (CSIQ) Continue to Surge Higher? http://t.co/DjsuxsO9rO http://t.co/j4E02DQA1k
lookn4wins
21 Aug 14 08:11:43
$MNKD Volume $MNKD Most recent stock chart and technical analysis. $FEYE $DUST $SLW $CSIQ $EPI $JNK http://sto http://t.co/eEpvTdTDGS
helen
21 Aug 14 08:03:23
@stockspastor are yyou short $csiq?
Dwayne Membrane
21 Aug 14 07:59:48
Added Canadian Solar ITM 34.50 calls. It finally came back a little, still a ton of upside. $CSIQ
Vaulty Boy
21 Aug 14 07:47:36
$CSIQ this was the second time... abcding and right before it would push fails and collapses! be caureful guys! wait for confirmation!
Investors Hangout
21 Aug 14 07:41:26
DennyT: ECAU Balance Sheet $ECAU $CSIQ $SWKS $JNUG $AEM http://t.co/bLU22jrKzT
Investors Hangout
21 Aug 14 07:41:06
DennyT: ECAU Balance Sheet $ECAU $CSIQ $SWKS $JNUG $AEM http://t.co/2X5o6FSEr2
Steve Patrick
21 Aug 14 07:16:11
$CSIQ finally showing a little weakness here, may be looking size in a bit with these Sept puts if we start seeing lower highs
Financial Headlines
21 Aug 14 07:13:36
$CSIQ: Canadian Solar Inc Stock Upgraded (CSIQ) http://t.co/E7Tzg1k1u6 http://t.co/ZXeBU21ZZ0
Investors Hangout
21 Aug 14 07:12:45
leahanne: $CSIQ Canadian Solar Inc (CSIQ) 34.97 -0.23 http://t.co/t3Y3a4RbRw
Investors Hangout
21 Aug 14 07:12:20
leahanne: $CSIQ Canadian Solar Inc (CSIQ) 34.97 -0.23 http://t.co/YLam9eMzNl
NYC Trader
21 Aug 14 07:10:08
$CSIQ $BITA short working well. $SPWR might be te next.
Kris Sidial
21 Aug 14 07:09:26
$CSIQ are you finally ready to cut it out and come back down ???
Jonathan Vane Tabler
21 Aug 14 07:06:56
short $CSIQ 34.7
leahanne
21 Aug 14 07:03:54
$ELTP Elite Pharma Inc (ELTP) 0.3285 +0.0085 (+2.66%) $BIIB $USO $CSIQ http://t.co/Y0w5wQEVVQ
Modern Rock
21 Aug 14 07:03:43
$CSIQ i mentioned premarket this was a watch for short which i took and now it's down half a buck so far
smallcapbear
21 Aug 14 07:03:34
$CSIQ new lows...
CNBC Opinion
21 Aug 14 06:56:57
Investing in climate change: A 25-stock index http://t.co/2Kae2fAiHS $CSIQ $JASO $ELON $ROP $MON $CWCO
Vaulty Boy
21 Aug 14 06:56:20
$CSIQ we might starts seeing the sideways action and perk back to green like it has been doing lately! lets see!
NYC Trader
21 Aug 14 06:55:04
$CSIQ finally little crack.
leahanne
21 Aug 14 06:54:52
$FXI FTSE China 25 Index Fund Ishares (FXI) 40.88 -0.33 (-0.80%) $ANAS $AA $CSIQ http://t.co/CtaF0vcsTf
				
				
By  +Follow March 5, 2014 2:45PM
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