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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.

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Results for CSIQ
27 Aug 15 17:16:41
$CSIQ high open interest range is 20.00 to 18.00 for option expiration 08/28/2015. http://t.co/UeR8FZANmI
Capital Market Labs
27 Aug 15 16:37:00
Interactive Chart -> http://t.co/TQYnBqSsjj $CSIQ Research and Development is Rising. http://t.co/hVXKq2tv22
Canadian Solar
27 Aug 15 16:21:11
RT @SleekMoneycom: Canadian Solar Now Covered by Cowen and Company $CSIQ http://t.co/DPBGHaEOTA
Analyst Actions
27 Aug 15 15:13:02
$CSIQ: Bullish analyst action by Standpoint Research on Canadian Solar: http://t.co/VjNmzRIjiS http://t.co/JZvyT5hORl
27 Aug 15 14:01:01
$CSIQ Max Pain = 18.50. Maturity = 08/28/2015. Previous close = 18.23. http://t.co/FbsJ0k5e4O
27 Aug 15 13:43:09
QLD ProShares Ultra QQQ Fund Investor Opinions http://t.co/dsNZo77R6d $QLD $XLY $SCO $CSIQ #QLD #stock #stocks
27 Aug 15 13:40:04
IWM Russell 2000 iShares Market Cap http://t.co/08gACqqEpn $IWM $BABA $RGBP $CSIQ #IWM #stocks #share
27 Aug 15 13:34:07
CSIQ Canadian Solar Inc. % Change http://t.co/vouCLBEETJ $CSIQ $IYR $GE $HGU.TO #CSIQ #stock #nasdaq
27 Aug 15 13:32:35
BHP BHP Billiton Ltd. Prev Close http://t.co/GTUzaj0Yp3 $BHP $SMN $GG $CSIQ #BHP #stockmarket #tradeideas
27 Aug 15 13:32:34
BIDU Baidu, Inc. Quotes http://t.co/1P74T9HnIH $BIDU $ABX $CSIQ $MYEC #BIDU #stock #invest
27 Aug 15 12:49:11
http://t.co/Fbbwdqk3HX Jaw Dropping verified $419,777 profit on a trade super_trades $CSIQ $BTU $NOV $WEN
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Amazing Day in #AwesomeCalls Another 10 Trading Ideas Laid out ALL in PreMarket Nail $AMBA $CYBR $CSIQ $UVXY $EXEL $SINA $CSX $NQ $PBYI $WSM
Sleek Money
27 Aug 15 11:51:11
Canadian Solar Now Covered by Cowen and Company $CSIQ http://t.co/DPBGHaEOTA
27 Aug 15 10:10:31
@jimcramer sell chinese stocks was the idea today. What about $CSIQ? Is it any better than $FSLR or do you play another solar? #CramerQ
Investors Hangout
27 Aug 15 09:28:33
clayton: CSIQ 17.82 Canadian Solar Inc $CSIQ added to my http://t.co/cYm7M6d5JI
Investors Hangout
27 Aug 15 09:28:10
clayton: CSIQ 17.82 Canadian Solar Inc $CSIQ added to my http://t.co/bR8piQnPV8
Juan Macias
27 Aug 15 09:23:08
$CSIQ needs internal momo, mrkts, oil up & no traction. @ least $AMBA is moving up..
27 Aug 15 09:17:28
CSIQ 17.82 Canadian Solar Inc $CSIQ added to my watch list. Right now with CSIQ I am watching the last price 1 http://t.co/vjtCPE5EXD
Peter Bardens
27 Aug 15 08:04:43
$CSIQ Large Inflow of Money Witnessed in Canadian Solar Inc. http://t.co/w7HjM86awV
Investors Hangout
27 Aug 15 07:53:37
jim50: CSIQ Gapped up +0.53 $CSIQ Last Price 17.97 Day http://t.co/NqToxTok2t
Investors Hangout
27 Aug 15 07:53:36
jim50: CSIQ Gapped up +0.53 $CSIQ Last Price 17.97 Day http://t.co/1eZSY3nOiw
27 Aug 15 07:41:03
CSIQ Gapped up +0.53 $CSIQ Last Price 17.97 Day High 18.00 Day Low 17.95 Change +0.77 Volume 90,608 Today 99 s http://t.co/k9IuP1cTw0
Media Sentiment
27 Aug 15 07:00:53
$CSIQ received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 205
Market Int Center
27 Aug 15 07:00:02
Canadian Solar $CSIQ Showing Bearish Technicals With Support At $15.71 ( http://t.co/tuZ5c2OeH2 )
Russ Urban
27 Aug 15 06:51:41
Yandex $YNDX, a Russian Search Engine, is an interesting reversal play this morning, others $LNCO $LINE $REXX $CSIQ - http://t.co/gaTYVwk5G8
27 Aug 15 06:51:04
$CSIQ $CVE $ECA: Canada-based Stocks To Watch For: Canadian Solar Inc. (NASDAQ …: http://t.co/CarN1RUoSi
27 Aug 15 06:27:14
brian sweetheart
27 Aug 15 06:23:28
Voted top trading group. http://t.co/5eVXN8RJLp Related: $ACAS $DFS $BULR $ARCC $ASNA $CSIQ $ADXS
Profit Trade Room
27 Aug 15 06:16:34
Premarket $NQ +52% $TBIO +23% $FORD +20% $BURL +12% $LOOK +11% $EXEL +9% $SIG +8% $BTU +7% $CTIC +7% $ACAD +7% $HKTV +7% $CSIQ +7% $LINE +7%
P. Ricatti
27 Aug 15 06:10:50
$csiq +5,8% en PM superando los 18 http://t.co/vR6LqE2EYx
27 Aug 15 06:02:03
$SYT $STI $CSIQ: Pre-Market News Buzz on: Syngenta AG (ADR) (NYSE:SYT …: http://t.co/F1v7hTG2rC
27 Aug 15 06:01:06
investorsai : 8/27 - 9/2: We've got $CSIQ going down with 88% confidence: … http://t.co/60YgaL4k8o) http://t.co/26OchHB0wy
Christopher Angus
27 Aug 15 06:00:03
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Investors Analytics
27 Aug 15 05:48:20
8/27 - 9/2: We've got $CSIQ going down with 88% confidence: http://t.co/RpbIeDCkhY #daytrading #stocks #stockmarket http://t.co/qZzbv9CXe8
Antonio Costa
27 Aug 15 05:42:07
Clyde Grider
27 Aug 15 05:25:04
RT @CBOE: Actives on open @ CBOE: $AAPL $FB $CSIQ $CSCO $GE $INTC $JPM $NFLX
27 Aug 15 04:34:18
Premarket Top % Gainers: $TBIO 78% 1.5K vol, $NQ $STJ $FORD $RAX $UWTI $WB $CHAU $NADL $YINN $CSIQ $JKS $EXEL $SCTY $RUSL $ERX $TECL $UCO
27 Aug 15 04:22:15
Premarket Top % Gainers: $NQ 64%, $STJ 13%, $FORD 11%, $EXEL 10%, $RAX 9%, UWTI 9%, $WB 9%, $CHAU 8%, $CSIQ $RUSL $JKS $ERX $YINN $UCO $SCTY
Analyst Actions
27 Aug 15 04:21:02
$CSIQ: Bullish analyst action by Standpoint Research on Canadian Solar: http://t.co/VjNmzRIjiS http://t.co/2IFitxSYtd
Jared Hine
27 Aug 15 04:17:58
RT @d4ytrad3: $YNDX $CSIQ $GPRO having nice morning
27 Aug 15 04:07:32
Premarket Top % Gainers: $NQ 71%, $NADL 16%, $STJ 12%, $UWTI 10%, $WB 9%, $CHAU 8%, $YINN 8%, $CSIQ 7%, $ERX 7%, $UCO 6%, $QIHU $SDRL $NUGT
27 Aug 15 03:48:21
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27 Aug 15 03:44:07
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27 Aug 15 03:43:42
JNUG Direxion Daily Junior Gold Miners Index Bull 3X Shares Last Trade http://t.co/36SAcJ7AGv $JNUG $CSIQ $CRGP $CEATLTD.IN #JNUG…
IH News Desk
27 Aug 15 03:43:20
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Investors Hangout
27 Aug 15 03:42:43
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Lucky Jimmy
27 Aug 15 03:38:36
FV First Trust Dorsey Wright Focus 5 ETF Stock Forum http://t.co/98llJRWDaV $FV $TLT $CSIQ $T #FV #stock #invest
27 Aug 15 03:38:07
CSIQ Canadian Solar Inc. Stock Forum http://t.co/EtcElF1hag $CSIQ $AEZS $DUST $TRV #CSIQ #finance #tradeideasCTCM CTC Media Inc. EOD…
27 Aug 15 03:37:48
CSIQ Canadian Solar Inc. Stock Forum http://t.co/JF5mEW9eIv $CSIQ $AEZS $DUST $TRV #CSIQ #finance #tradeideasCTCM CTC Media Inc. EOD…
27 Aug 15 03:37:40
CSIQ Canadian Solar Inc. Stock Forum http://t.co/HMtAjyZBAb $CSIQ $AEZS $DUST $TRV #CSIQ #finance #tradeideasCTCM CTC Media Inc. EOD…
By  +Follow March 5, 2014 2:45PM



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