logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Canadian Solar Shares Fall on Soft Outlook, Blames Weather

By  +Follow March 5, 2014 2:45PM
Share:
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.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for CSIQ
Peter Lundberg
22 Oct 14 13:42:20
Commented on StockTwits: Agree. $CSIQ was one of many extreme reversals. Thought of getting back in today so was ... http://t.co/uJ93Sn8Nm7
Calup Snider
22 Oct 14 12:01:11
Added to $CSIQ at 29.4
Stockaholics
22 Oct 14 11:35:38
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $CSIQ $LLEN $REGN
Calup Snider
22 Oct 14 11:31:09
$CSIQ was a swing from the get go. Mentioned at open I thought we'd get a better dip. Lost patience. Went long. Then got the dip.
Peter Lundberg
22 Oct 14 11:29:35
$CSIQ From +2.7% before gunshots reported in Ottawa Parliament, to -4% and dropping further. An Obama smidgen of over-reaction.
James P Worthy
22 Oct 14 11:02:39
$CSIQ J.P. Morgan Sees Big Buying Opportunity in Battered Solar Stocks http://t.co/vPnFoskKKR
Peter Bardens
22 Oct 14 11:02:38
$CSIQ Canadian Solar Inc. (CSIQ) Strikes 146.4 MW Honduras Deal - Analyst Blog http://t.co/ul4yNaWciG
lookn4wins
22 Oct 14 10:39:20
$LMT Parabolic SAR $LMT Most recent stock chart and technical analysis. $HUV.TO $ALXN $COS.TO $MYEC $CSIQ $CLF http://t.co/3qrpdB3IlK
Jarrad Fiorito
22 Oct 14 09:53:54
i made 1.03 on $ETE short, i made 1.00 on $CSIQ short, and i lost .12 on $DHI short
Calup Snider
22 Oct 14 09:45:15
Why I like solar going forward http://t.co/mRNtj7lofA $CSIQ
StreetAuthority
22 Oct 14 09:30:21
As solar energy becomes more cost efficient $SCTY $CSIQ varying business models should prove lucrative for investors http://t.co/eQMgs759Oj
Investors Hangout
22 Oct 14 09:23:45
leahanne: $CSIQ Canadian Solar Inc (CSIQ) 30.28 -0.57 http://t.co/jLB90kKcim
Investors Hangout
22 Oct 14 09:23:43
leahanne: $CSIQ Canadian Solar Inc (CSIQ) 30.28 -0.57 http://t.co/HoLDGIjbcV
leahanne
22 Oct 14 09:08:29
$CSIQ Canadian Solar Inc (CSIQ) 30.28 -0.57 (-1.85%) $SMN $SUNE $XLY http://t.co/VLH2vC4USx
Investors Hangout
22 Oct 14 09:06:14
Jake13: $CSIQ Sell? Click here to find out if $CSIQ is a http://t.co/BZpl0FoGu4
Scott Spencer
22 Oct 14 09:06:10
$CSIQ $30.30 LONG http://t.co/eOtO0Yq8Uh
Investors Hangout
22 Oct 14 09:06:10
Jake13: $CSIQ Sell? Click here to find out if $CSIQ is a http://t.co/mNPYkfGHrL
Jake13
22 Oct 14 08:38:51
$CSIQ Sell? Click here to find out if $CSIQ is a buy hold or sell. Watching these stocks. $JDST $ALXN $GDXJ $S http://t.co/BiFA0ecC71
Calup Snider
22 Oct 14 08:21:33
Still long $KMI from 34.2, $FEYE from 29.7, short in $SUNE 19, but not thrilled there, and new long in $CSIQ at 30.55. also not thrilled.
Trader Bob
22 Oct 14 07:33:51
Wednesday 30 minutes in Dow +10 We at +$15,470 $GWPH $ADEP $YELP $BITA $AMBA $CSIQ $TRIP http://t.co/m2ZGBw0yCt
Trader Bob
22 Oct 14 07:31:51
Wednesday 30 minutes in Dow +10 We at +$15,470 $GWPH $ADEP $YELP $BITA $AMBA $CSIQ $TRIP http://t.co/8KdAcPfhTV
Trader Bob
22 Oct 14 07:31:07
Wednesday 30 minutes in Dow +10 We at +$15,470 $GWPH $ADEP $YELP $BITA $AMBA $CSIQ $TRIP http://t.co/cjmgWwdbK0
Calup Snider
22 Oct 14 07:16:00
I like $CSIQ to at least trade back up to its 200 day.
Calup Snider
22 Oct 14 07:14:40
Starting $CSIQ at 30.55 on a swing.
Trader Bob
22 Oct 14 07:08:14
Wed Dow open +16 In spite of horrible open in $DDD we at +$7K $BITA $TRIP $GWPH $YELP $CSIQ $AMBA http://t.co/iXVQYW22Lf
Trader Bob
22 Oct 14 07:05:14
Wed Dow open +16 In spite of horrible open in $DDD we at +$7K $BITA $TRIP $GWPH $YELP $CSIQ $AMBA http://t.co/Mf9h2x24Ai
Trader Bob
22 Oct 14 06:59:08
Wed Dow open +16 In spite of horrible open in $DDD we at +$7K $BITA $TRIP $GWPH $YELP $CSIQ $AMBA http://t.co/u87Lsewb0D
Grant L
22 Oct 14 06:48:07
RT @szaman: Watch List 10/22/2014 http://t.co/0vk8xkZNt1 $ERY $LNG $BITA $MBLY $CSIQ $BCEI $HAWK $SAVE $LIVE #stock #trading
Calup Snider
22 Oct 14 06:44:05
Thought we'd get a better dip in $CSIQ than that today.
Investors Hangout
22 Oct 14 06:43:34
danrocks: $EEM Starting to get interesting $YGE $FNMA $CSIQ http://t.co/u5zD570vf4
Investors Hangout
22 Oct 14 06:43:12
danrocks: $EEM Starting to get interesting $YGE $FNMA $CSIQ http://t.co/XJ5yKvO5cs
danrocks
22 Oct 14 06:39:30
$EEM Starting to get interesting $YGE $FNMA $CSIQ $JDST $AGIO http://t.co/KOG1JHkXFc
lookn4wins
22 Oct 14 06:37:44
$IBM Parabolic SAR $IBM Most recent stock chart and technical analysis. $PCLN $CSIQ $ZAZA $ABT $GOGO $CELG htt http://t.co/WzDgHQnkd2
Cody Nardy
22 Oct 14 06:28:36
RT @kunal00: Morning Watchlist http://t.co/TjHXsod4S4 $spy $iwm $csiq $bcei $emes $live $ery
The LincolnList
22 Oct 14 06:24:53
adding $SPLK $CSIQ $BITA $TSO $DDD $RGLS to watch
Maribeth
22 Oct 14 06:21:15
RT @kunal00: Morning Watchlist http://t.co/TjHXsod4S4 $spy $iwm $csiq $bcei $emes $live $ery
Kunal Desai
22 Oct 14 06:01:19
Morning Watchlist http://t.co/TjHXsod4S4 $spy $iwm $csiq $bcei $emes $live $ery
Shysterjd
22 Oct 14 05:52:44
RT @szaman: Watch List 10/22/2014 http://t.co/0vk8xkZNt1 $ERY $LNG $BITA $MBLY $CSIQ $BCEI $HAWK $SAVE $LIVE #stock #trading
NYC Trader
22 Oct 14 05:52:27
Watch List 10/22/2014 http://t.co/0vk8xkZNt1 $ERY $LNG $BITA $MBLY $CSIQ $BCEI $HAWK $SAVE $LIVE #stock #trading
ZOZO
22 Oct 14 02:38:22
$JASO $CSIQ UBS to hold meetings at Solar Power International are being held in Las Vegas on October 21-23.
Stockaholics
22 Oct 14 00:35:09
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $CSIQ $LLEN $REGN
ClickMediaUK
21 Oct 14 21:59:06
RT @StockSignaling: Movers and Shakers: Making Range Advances: $WFT $HUN $LVNTA $CIEN $SNV $TRN $PKG $SAVE $OREX $CSIQ $TIME $LIVE $RCL $SH…
Henry Franco Bendeck
21 Oct 14 21:06:47
RT @StockSignaling: Movers and Shakers: Making Range Advances: $WFT $HUN $LVNTA $CIEN $SNV $TRN $PKG $SAVE $OREX $CSIQ $TIME $LIVE $RCL $SH…
Roger
21 Oct 14 21:06:19
RT @StockSignaling: Movers and Shakers: Making Range Advances: $WFT $HUN $LVNTA $CIEN $SNV $TRN $PKG $SAVE $OREX $CSIQ $TIME $LIVE $RCL $SH…
Calup Snider
21 Oct 14 21:04:45
If the market gods are really smiling on me, $CSIQ will take a dip to give me better range on a swing.
David
21 Oct 14 21:03:08
RT @StockSignaling: Movers and Shakers: Making Range Advances: $WFT $HUN $LVNTA $CIEN $SNV $TRN $PKG $SAVE $OREX $CSIQ $TIME $LIVE $RCL $SH…
Alex K
21 Oct 14 21:02:56
RT @StockSignaling: Movers and Shakers: Making Range Advances: $WFT $HUN $LVNTA $CIEN $SNV $TRN $PKG $SAVE $OREX $CSIQ $TIME $LIVE $RCL $SH…
Stock Signaling
21 Oct 14 21:01:23
Movers and Shakers: Making Range Advances: $WFT $HUN $LVNTA $CIEN $SNV $TRN $PKG $SAVE $OREX $CSIQ $TIME $LIVE $RCL $SHLD $ODP #analytics
Large Void
21 Oct 14 20:22:52
$BCEI could use some consolidation, but also nice relative range. $BITA expecting 83 tap. $CSIQ easy MA200 target. $ERY bounce. $FEYE b/o+ma
waverider78
21 Oct 14 18:13:20
Another slow day, 2 quick trades, small $1500 gain. Nothing great but trying keep hitting singles every time I am on the plate $STRP $CSIQ
				
				
By  +Follow March 5, 2014 2:45PM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

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