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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.

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
31 Aug 14 23:56:58
$CSIQ Ex-Div Date http://t.co/ouiHhuEyOs Also See: $EWQ $TNA $GDX $AMAT ~
Investors Hangout
31 Aug 14 23:53:34
$CSIQ Bid http://t.co/Ld5SpnVA9D Also See: $CCJ $HKUP $YPF $ITUB ~
Chasing Stars
31 Aug 14 23:48:09
$CSIQ Open http://t.co/R4x5ovGSjA Also See: $CLR $DGLY $T $COP ~
Investors Hangout
31 Aug 14 23:47:03
$CSCO Ask Size http://t.co/rPLCwRxfJB Also See: $CSIQ $GDX $DDD $VIPS ~
Rosner Stocks
31 Aug 14 23:34:42
$CSIQ 52Wk High http://t.co/9JdOBukH75 Also See: $DDM $TSCO $FXI $XLF ~
Investors Hangout
31 Aug 14 23:32:42
$CSIQ Last Trade http://t.co/AxntFYAsnf Also See: $VXX $CAR $HYG $GILD ~
Stock Signaling
31 Aug 14 23:31:04
Technology Sector: Upgrades: $SAAS $CHL $WIN $SANM $ECOM $alu $PLAB $CSIQ $DOX $lvlt $VZ $BRC $INFA $chu $OVTI http://t.co/Vtx6dLy0Nw #mkt
Stock Forums
31 Aug 14 23:30:29
$CSIQ Last Price http://t.co/YTfNsFfoUu Also See: $DBC $XLP $HCLP $EEM ~
Investors Hangout
31 Aug 14 23:29:32
$COP Summary http://t.co/Rl9LsxXR1H Also See: $MOO $CSIQ $UNG $MCD ~
Investors Hangout
31 Aug 14 21:28:03
$BIDU Yield http://t.co/7ou7jJZsaV Also See: $KRED $CSIQ $PLKD $GS ~
31 Aug 14 20:37:51
$tsl $jks $fslr $sune $csiq Solar power investors start to see some light and heat http://t.co/Kx8eVtTm53 via @WSJ
Companies in News
31 Aug 14 20:13:30
$CSIQ: Canadian Solar Beats on Q2 Earnings, Shares Rally Over 24% http://t.co/PocP0yvOSM http://t.co/gELvNlDPGh
Investors Hangout
31 Aug 14 20:03:36
$AMAT 52Wk Low http://t.co/MSo106GVUX Also See: $VXX $ABX $NTEK $CSIQ ~
Chasing Stars
31 Aug 14 19:50:50
$AIG Tick http://t.co/2iFm34Tk6J Also See: $CSIQ $NFLX $UGAZ $NGD ~
Stock Forums
31 Aug 14 19:46:26
$AIG EOD Data http://t.co/anKvUBQuE6 Also See: $DGLY $XLE $XLE $CSIQ ~
Rosner Stocks
31 Aug 14 19:44:20
$AIG Volume http://t.co/imT2tQ4ytn Also See: $CSIQ $BAC $GDX $AAPL ~
Investors Hangout
31 Aug 14 19:23:32
$ABX Last Trade http://t.co/k3Nfx7TgK9 Also See: $MEAS $PBR $CSIQ $GLD ~
Stock Headlines
31 Aug 14 19:14:18
$CSIQ: Canadian Solar Completes Sale of Good Light Solar Power Plant to BluEarth http://t.co/rNdTck17PN http://t.co/kkI2uEkRv7
Jerremy Newsome
31 Aug 14 18:58:00
$SPLK reminds me of $CSIQ a few weeks back. DELICIOUS!!! http://t.co/41RkI9xFkc
John Ross
31 Aug 14 11:15:15
4Q ER basket: $TRN $CSIQ $UBNT ... Got some more room here
Jerremy Newsome
30 Aug 14 08:50:15
Just as an update, I did finally buy to close the $CSIQ puts I sold. Sold for .35 - BTC for .05 #newsometrade
Stanislaus Haribowo
30 Aug 14 08:08:13
Pivot Point Trading
29 Aug 14 22:47:16
Trade Analysis & Opportunities $DE $BRK.B $CHK $CSIQ $FSLR $GRMN $LLY $LNKD $ORCL $PEP $SCTY $TGT $SODA $SEE http://t.co/UW4WYaS0nG
Financial Headlines
29 Aug 14 19:13:26
$CSIQ: Canadian Solar rallies nearly 20% on earnings http://t.co/mUix8OLlti http://t.co/2wLSkiWERY
Wall Street News
29 Aug 14 18:13:32
$CSIQ: Video blog: trade review and the art of trading management http://t.co/R1kduiaCjx http://t.co/EFQDVf0yWD
Market Headlines
29 Aug 14 17:13:36
$CSIQ: Canadian Solar (CSIQ) Highlighted As Today's Perilous Reversal Stock http://t.co/4DYty9Q33l http://t.co/x9XsEPDcsl
Investors Hangout
29 Aug 14 17:08:28
$TIP Last Price http://t.co/tyT3G9oc1S Also See: $CSIQ $SIRI $THI $OIH ~
Investors Hangout
29 Aug 14 17:03:32
$THI.TO 52Wk Low http://t.co/EeHOHU8UoA Also See: $AA $CSIQ $RSP $SD ~
Market Headlines
29 Aug 14 16:13:40
$CSIQ: Canadian Solar Inc.: Canadian Solar Completes the Sale of Good Light Solar ... http://t.co/GhmdKCuDX5 http://t.co/Idxhr2H97z
Stock Forums
29 Aug 14 15:55:45
$SSYS Company Info http://t.co/kmOijmUCwx Also See: $CSIQ $YPF $CPRX $GGAL ~
Stock Forums
29 Aug 14 15:37:28
$SPLK Ideas http://t.co/RNHJnPaprq Also See: $CSIQ $CEF $NKE $QIHU ~
Stock Forums
29 Aug 14 15:15:06
$SLB Dividend http://t.co/v2Z68ze3Wh Also See: $CSIQ $AXCG $BBY $EWY ~
29 Aug 14 15:10:17
@marketcall What is your opinion of Canadian Solar $CSIQ? Thanks.
29 Aug 14 14:44:57
$SD Investor Opinions http://t.co/R57jNnBjYP Also See: $JNK $TRUE $CSIQ $DDD ~
Market Updates
29 Aug 14 14:13:49
$CSIQ: Canadian Solar Inc.: Canadian Solar Completes the Sale of Good Light Solar ... http://t.co/2kQANMg53m http://t.co/nuAWeckylf
Chasing Stars
29 Aug 14 13:57:14
$QIHU Ideas http://t.co/Cf45Af0ooy Also See: $CYCC $GS $CSIQ $JRJC ~
Media Sentiment
29 Aug 14 12:05:18
$CSIQ received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 274
Market Int Center
29 Aug 14 12:02:28
Canadian Solar $CSIQ Showing Bullish Technicals With Support At $33.30 ( http://t.co/dcSa3pBMxk )
Samuel Brown
29 Aug 14 12:00:25
$CSIQ Canadian Solar rallies nearly 20% on earnings http://t.co/PT3mBzZ8uZ
Stock Forums
29 Aug 14 11:14:28
$MTVX Day Low http://t.co/jyCWAsJ9Lx Also See: $FNMA $CCJ $CSIQ $EDN ~
Financial Headlines
29 Aug 14 11:13:48
$CSIQ: Company News for August 14, 2014 http://t.co/8ftqNkNNd8 http://t.co/46HN4URYE1
29 Aug 14 11:04:38
$MBLY Bid Size http://t.co/fxD495zVEC Also See: $VIPS $CCJ $CSIQ $TLT ~
29 Aug 14 10:47:19
RT @stock_forums: $LUV Volume http://t.co/pPnpE3G3jJ Also See: $AMZN $XIV $CSIQ $LNKD ~
Stock Forums
29 Aug 14 10:46:58
$LUV Volume http://t.co/pPnpE3G3jJ Also See: $AMZN $XIV $CSIQ $LNKD ~
Rosner Stocks
29 Aug 14 10:03:59
$KO Ideas http://t.co/xACgkMOTLJ Also See: $CSIQ $GMCR $WMT $ACHN ~
China Stock Research
29 Aug 14 09:55:05
Solar Makers Set for Record 2014 Sales on Strong Demand http://t.co/vrHCYW04er $TSL $JASO $JKS $YGE $CSIQ
Albert Chitemyan
29 Aug 14 08:50:20
$CSIQ doesn't want to go down!!! damn! if it holds here couple of they i am reversing to long
Seb Henbest
29 Aug 14 08:41:45
RT @ehreng: Solar Makers Set for Record 2014 Sales on Strong Demand http://t.co/4oyLz8UnAv via @BloombergNews $CSIQ $YGE $SPWR $TSL $HSOL $…
29 Aug 14 08:23:31
RT @ehreng: Solar Makers Set for Record 2014 Sales on Strong Demand http://t.co/4oyLz8UnAv via @BloombergNews $CSIQ $YGE $SPWR $TSL $HSOL $…
29 Aug 14 08:19:11
RT @ehreng: Solar Makers Set for Record 2014 Sales on Strong Demand http://t.co/4oyLz8UnAv via @BloombergNews $CSIQ $YGE $SPWR $TSL $HSOL $…
By  +Follow March 5, 2014 2:45PM



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