Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?



Canadian Solar Shares Fall on Soft Outlook, Blames Weather

By  +Follow March 5, 2014 2:45PM
Tickers Mentioned:

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. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Signup for our daily newsletter and get our best articles emailed right to you!

Results for CSIQ
30 Nov 15 17:15:20
FOMX DD 4 investors.Read here: https://t.co/7yeFtYQQ00 $CSH $CSI $CSII $CSIQ $CSJ $CSL $CSLS $CSLT
30 Nov 15 15:03:14
$CSIQ Expanding range https://t.co/LFi0vtcKpb
Breaking News Now
30 Nov 15 14:51:13
$CSIQ: Analyst Target Update: Canadian Solar Inc. (NASDAQ:CSIQ): https://t.co/oT7ewkfGpn
China Invest
30 Nov 15 14:09:05
RT SeekingAlpha: China IPOs: New York Listings Shrivel In 2015 https://t.co/RWCYUqW5WU $BABA $WB $JD $QIHU $CSIQ $BZUN $WOWO $JP $HMIN
IPO Watch
30 Nov 15 14:02:59
China IPOs: New York Listings Shrivel In 2015 https://t.co/4yvzkMPwTK $BABA $WB $JD $QIHU $CSIQ $BZUN $WOWO $JP $HMIN
Seeking Alpha
30 Nov 15 14:02:58
China IPOs: New York Listings Shrivel In 2015 https://t.co/UvlDwJfvZP $BABA $WB $JD $QIHU $CSIQ $BZUN $WOWO $JP $HMIN
30 Nov 15 13:26:13
$CSIQ: Sentiment Ratings Released for Canadian Solar Inc. (NASDAQ:CSIQ): https://t.co/L68mKvcjmP
30 Nov 15 13:02:31
https://t.co/gFp5NZs97c <-- *REVIEW* TIMFundamentals Part Deux $SPY $ALNY $DAN $COP $CSIQ $BOX $XIV #stocks
Stanley Womack
30 Nov 15 12:18:17
$CSIQ sorry https://t.co/UG0VSTsRBz
30 Nov 15 12:02:57
Southern Co. buys first solar project in Texas https://t.co/SHgqfkkprj $SO, $CSIQ
30 Nov 15 12:00:25
$CSIQ Max Pain is 22.00 for maturity 12/04/2015. Price = 22.90. https://t.co/tj0ZO3qC1a
Seeking Alpha
30 Nov 15 12:00:17
Southern Co. buys first solar project in Texas https://t.co/tSJ2P0AHuF $SO $CSIQ
Energy Stocks SA
30 Nov 15 12:00:16
Southern Co. buys first solar project in Texas https://t.co/fzPvW60GlG $SO $CSIQ
Breaking News
30 Nov 15 12:00:16
Southern Co. buys first solar project in Texas https://t.co/mA3dqUZOOO $SO $CSIQ
30 Nov 15 11:20:26
https://t.co/Fbbwdqk3HX Jaw Dropping verified $419,777 profit on a trade super_trades $CSIQ $BTU $NOV $WEN
Prof. Manish Thakur
30 Nov 15 11:04:19
RT @Canadian_Solar: Good analysis on #CanadianSolar stock from @ZacksResearch! $CSIQ #solar https://t.co/rVM74vJOiJ
30 Nov 15 09:00:17
$CSIQ trading higher into resistance https://t.co/pTTxCzDDDO
30 Nov 15 08:20:46
Covered Call Alert: CANADIAN SOLAR $CSIQ returning up to 36.05% through 15-Apr-2016 https://t.co/uYqoI9kg4N
30 Nov 15 08:04:53
$PACD $AMBA $BIOC $BMY $BSX $CSIQ $CYCC $IRWD $KANG $LGF $SPLS Breaking News/Updates https://t.co/TxRrrjTwlX
30 Nov 15 07:40:12
$CSIQ: Canadian Solar subsidiary closes on a combined construction and long term debt facility for ~$275 mln https://t.co/Ixf0Cqju2T
Trader Bob
30 Nov 15 07:14:02
Monday ALL ACTIVE BUY ORDERS 4 TODAY already bot $EMES $CSIQ https://t.co/tQNvwPWcjh
Trader Bob
30 Nov 15 07:12:00
Monday ALL ACTIVE BUY ORDERS 4 TODAY already bot $EMES $CSIQ https://t.co/2Nozq6Bh0i
Trader Bob
30 Nov 15 07:11:41
Monday ALL ACTIVE BUY ORDERS 4 TODAY already bot $EMES $CSIQ https://t.co/IZ2lKIxeqw
30 Nov 15 07:10:49
$CSIQ moving up nicely to 38,2% Fib Retrace & 200 DMA, up 2.67% https://t.co/fxTKktYteB
30 Nov 15 07:01:36
$SPX hitting the upper trend line of wedge, penetrated slightly and bounced. Moving to 8 DMA $SCTY $CSIQ $AMBA https://t.co/GouRSRfnY6
P. Ricatti
30 Nov 15 07:00:50
Mayoria de subas en empresas de energia renovable mi preferida $csiq 23 +2,3% https://t.co/jdKJNGegy2
Alexandros Yfantis
30 Nov 15 06:56:27
$CSIQ in bullish mode targeting 25$ and then 27$. Bullish as long as price is above 20$ https://t.co/OZDkGUWQ8A
30 Nov 15 05:51:38
Early morning watch list on catalysts: $ORMP $PIRS $CBLI $CANF $AVXL $PRSN $CSIQ $CLDX - chat with our traders free in our free chat room.
MyAllies Trading
30 Nov 15 05:49:06
$CSIQ Canadian Solar Subsidiary Recurrent Energy Partners in 157 MW Texas Solar Project https://t.co/csWUnBxk0B
US Banking News
30 Nov 15 05:48:03
Standpoint Research Lowers Canadian Solar Inc. $CSIQ to Hold https://t.co/ztVDa76UYG
30 Nov 15 05:47:01
$CSIQ - Canadian Solar Subsidiary Recurrent Energy Partners in 157 MW Texas Solar Project https://t.co/4HFZN1Enh2
Media Sentiment
30 Nov 15 05:43:22
$CSIQ received a new alert. Find out why at https://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 140
MyAllies Trading
30 Nov 15 05:39:26
$CSIQ Canadian Solar Subsidiary Recurrent Energy Secures Debt Financing for 157 MW Texas Solar Project https://t.co/csWUnBxk0B
30 Nov 15 05:39:09
Canadian #Solar subsid sells controlling interest in Texas project to Southern Company. https://t.co/o65bKNy9lN $CSIQ $SO #mna #utilitires
30 Nov 15 05:37:02
$CSIQ - Canadian Solar Subsidiary Recurrent Energy Secures Debt Financing for 157 MW Texas Solar Project https://t.co/0A8CEmeSnu
P. Ricatti
30 Nov 15 05:36:57
@schulte_richard @vwandres $fslr $csiq o $vwdry me gustan más
30 Nov 15 05:32:04
$CSIQ - Southern Company subsidiary acquires first solar project in Texas https://t.co/H5RJTNy8bz
30 Nov 15 04:39:01
Follow-Up To Some #Bullish #Solar Setups $CSIQ $FSLR $SPWR $TAN $SCTY $HQCL https://t.co/1CJNV5mBBZ
30 Nov 15 04:02:18
Want the latest upgrades & downgrades for $PCX $PSUN $MRVL $JASO $CSIQ? Checkout MarketBeat Daily https://t.co/nSJuDsYidj
IH News Desk
30 Nov 15 01:52:05
XLU Utilities Select Sector SPDR E.P.S. https://t.co/jL7xO2Eby4 $XLU $RGS $CSIQ $CNY #XLU #share #stockmarket
30 Nov 15 01:35:04
CSIQ Canadian Solar Inc. Quotes https://t.co/0wFtfdzMhl $CSIQ $CYH $FXI $JBHT #CSIQ #investing #tradeideas
30 Nov 15 01:33:37
A Agilent Technologies, Inc. Stock Message Board https://t.co/NackEjJ2CJ $A $CSIQ $FEYE $TSLX #A #nasdaq #nasdaq
30 Nov 15 00:44:10
MCD McDonalds Corp. News https://t.co/jCO8hS7vWK $MCD $CSIQ $DSNY $DHS #MCD #share #pennystocks
30 Nov 15 00:34:47
CSIQ Canadian Solar Inc. Last Price https://t.co/nZiM7GNrbE $CSIQ $EBIO $AEZS $CERN #CSIQ #pennystocks #finance
TalkMarkets Recap
29 Nov 15 22:39:03
Follow-Up To Some #Bullish #Solar Setups $CSIQ $FSLR $SPWR $TAN $SCTY $HQCL https://t.co/MhwvOmFq7Z
29 Nov 15 21:27:12
$CSIQ: Company Shares of Canadian Solar Inc. (NASDAQ:CSIQ) Rally 7.66%: https://t.co/8b4p8znzKv
Scott Spencer
29 Nov 15 19:45:42
MT @zozotrader $CSIQ $SUNE $SPWR $FSLR $SCTY Bill Gates to announce multibillion-dollar clean energy fund @Bloomberg https://t.co/7LHa1AxM0Q
Peter Pham
29 Nov 15 17:27:24
$RUN ~ Sunrun Inc. due diligence report $RUN recent news/filings ## source: finance.yaho $RUN $NONE $CSIQ $SAN https://t.co/NJr4jTjw46
Peter Pham
29 Nov 15 17:27:01
$RUN ~ Sunrun Inc. due diligence report $RUN recent news/filings ## source: finance.yaho $RUN $NONE $CSIQ $SAN https://t.co/s9G8GjsN3F
Dr. Duru
29 Nov 15 15:51:32
Follow-Up To Some #Bullish #Solar Setups $CSIQ $FSLR $SPWR $TAN $SCTY $HQCL https://t.co/tmub0INCtI
By  +Follow March 5, 2014 2:45PM



blog comments powered by Disqus

 Today's Must Reads

What Crowdfunding Leaders Are Saying About the SEC’s Approval of Title III

How the Drug Price Scrutiny is Affecting Pharma Stocks

8 More Tips for Choosing the Right Crowdfunding Platform

Will the Post-Smartphone Era Bring Wearable Drones?

3 Cloud Stocks That Pay Dividends


Small-cap stocks offer investors many benefits, ranging from higher growth potential to overlooked value opportuni... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register