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


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Results for CSIQ
Project_Pat
26 Apr 15 19:24:14
$TAN IV30 $FSLR $SUNE $SCTY $SPWR $CSIQ $SPY $VIX http://t.co/GuZhYuTM4Z
Steve Nurse
26 Apr 15 17:34:01
Like shale, solar power is shaking up global energy http://t.co/oYqJ464ePf $SCTY $FSLR $CSIQ
Investors Hangout
26 Apr 15 14:30:15
chartguy89: CSIQ -0.36% Stock Charts $CSIQ Canadian Solar http://t.co/N3ahqWw3fO
Investors Hangout
26 Apr 15 14:30:12
chartguy89: CSIQ -0.36% Stock Charts $CSIQ Canadian Solar http://t.co/dwc33WslMG
chartguy89
26 Apr 15 14:27:54
CSIQ -0.36% Stock Charts $CSIQ Canadian Solar Inc. (NASDAQ) Last Updated: 04/26/2015 16:27:55 CSIQ Stock Chart http://t.co/x05HcdIrMQ
MAT
26 Apr 15 12:27:49
RT @ACInvestorBlog: $CSIQ Long over $37 on volume. http://t.co/Qs2lKm7cRK
Antonio Costa
26 Apr 15 11:48:11
$CSIQ Long over $37 on volume. http://t.co/Qs2lKm7cRK
Capital Market Labs
26 Apr 15 10:58:52
$CSIQ EPS is Accelerating. #CML_CSIQ #CML_EPS http://t.co/tJCMQ66zMu http://t.co/Tz6Jcva2FI
Rodriguez Donna
26 Apr 15 09:49:06
@natedaytrade $CSIQ ...Market Guru leratton bought CSIQ - https://t.co/890wBDukgs
natetrades
26 Apr 15 09:48:55
$CSIQ chart https://t.co/jOu1z57Pks via http://t.co/fJpA614IBv
FonsieTrader
26 Apr 15 06:22:33
$CSIQ Breakout Mode http://t.co/XtZovOqwES
Capital Market Labs
25 Apr 15 23:24:43
$CSIQ Revenue and Earnings are Rising. #CML_CSIQ #CML_Revenue #CML_Earnings http://t.co/RfkBGCpVUi http://t.co/bQve6mN2tk
SmallCaps
25 Apr 15 22:37:24
http://t.co/LnWZaIJviH <-- In a few months this guy will likely be Super_trades 1st Millionaire student! $NQ $CSIQ $LVS $LNCO
Mike Mustafoglu
25 Apr 15 19:00:36
Moving Average Divergence Convergence (MACD) Bullish Cross $CSIQ $VLO $WNR
ProVesting
25 Apr 15 14:30:02
$HPQ $APD $CSIQ: Friday's Stocks with Negative Closing: Hewlett-Packard Company ...: http://t.co/tB2Cmb5KRB
Investors Hangout
25 Apr 15 12:08:51
$SZYM stock Ask Size Click Here: http://t.co/vL45jz5B5u Also See: $MTD $CSIQ $XBIT $WLK #stockmarket #tradeideas ~
Chasing Stars
25 Apr 15 09:55:11
$ANTH stock Financials Click Here: http://t.co/rmxWXkQBSl Also See: $NI $WOOF $VASC $CSIQ #stockmarket #tradeideas ~
Investors Hangout
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$MY stock Shares Click Here: http://t.co/1pA1rdaH8n Also See: $ETFC $OWW $WLK $CSIQ #stockmarket #tradeideas ~
Lin/林莹君
25 Apr 15 08:35:45
$TAN $CSIQ $TSL had really good run and time for...
Invest | Donate
25 Apr 15 07:24:51
@rosnerstocks: $CSIQ stock Ex-Div Date Click Here: http://t.co/7ain2dTjVO Also See: $CELG $ARII $SBAC $UTHR #stockmarket #invest #stocks …
Rosner Stocks
25 Apr 15 07:10:27
$CSIQ stock Ex-Div Date Click Here: http://t.co/zutu5dZ3H3 Also See: $CELG $ARII $SBAC $UTHR #stockmarket #invest #stocks #tradeideas ~
Stock Rocket
25 Apr 15 04:16:22
Our Stock Pick On $THCZ Is Up 481.54% From Our Initial Release! Major News: http://t.co/bLXWVUeOrx $CSIQ $LLEN $REGN
PolgarStocks
24 Apr 15 22:57:11
Stocks Trending Now: http://t.co/prRAmk6x0I $MTU $CSIQ $TTM $TMHC $ABC $SNMX $DYN $SZYM $RDN $PMD $ALTR $HNP ~
nasdaqfan
24 Apr 15 21:35:48
Stocks Trending Now: http://t.co/Hl6ZNuI4Hk $RVBD $SKX $GOOG $TNH $NBS $TSRO $CSIQ $BFR $SPLS $SPF $TCP $TNAV ~
Stockaholics
24 Apr 15 21:10:37
We Have An Absolutely MASSIVE New Stock Pick Out! Get Early Access: http://t.co/P9qXvMc7W2 $CSIQ $LLEN $REGN
StockenheimerSchmidt
24 Apr 15 21:02:33
Platinum Members Saw Our Stock Alerts Gain Over 3100% In 6 Months! Subscribe Here: http://t.co/KjFX61Pd0S $CSIQ $LLEN $REGN
Stock Dawgzz
24 Apr 15 21:01:10
Our Penny Stock Picks Gained 1472% In 2 Months! Get Access To Our New Pick: http://t.co/XxqN9MfSHf $CSIQ $LLEN $REGN
Invest | Donate
24 Apr 15 20:03:26
@PolgarStocks: $SBAC EOD Data Click Here: http://t.co/942dwVCydU Also See: $RWLK $CSIQ $NWY $NEOG #stockmarket #invest #stocks ~
PolgarStocks
24 Apr 15 19:57:21
$SBAC EOD Data Click Here: http://t.co/sTbK0fvpFL Also See: $RWLK $CSIQ $NWY $NEOG #stockmarket #invest #stocks ~
Penny Stockington
24 Apr 15 19:55:42
Our Winning Penny Stock Picks Gained Over 3115% In The Past 6 Months! Huge News: http://t.co/Lau57a75up $CSIQ $LLEN $REGN
Capital Market Labs
24 Apr 15 18:39:06
$CSIQ Revenue and Earnings are Increasing. #CML_CSIQ #CML_Revenue #CML_Earnings http://t.co/RfkBGCpVUi http://t.co/DYfa261plE
PolgarStocks
24 Apr 15 17:15:35
$ALGT Day High Click Here: http://t.co/lhjLJsRSX5 Also See: $SGMO $CSIQ $CSX $VOD #stockmarket #invest #stocks ~
IH News Desk
24 Apr 15 17:14:19
Stocks Trending Now: http://t.co/Ly6bZhrgvE $HTLD $HCA $CSIQ $GDP $EJ $ADNC $BDC $GOLD $NTWK $SNA $XRX $PSMT ~
IH NASDAQ OMX
24 Apr 15 16:31:49
Stocks Trending Now: http://t.co/3o3t4shuZs $ALG $CSIQ $SUNE $SFNC $AVH $PVA $MTU $ORCL $SPPR $CRC $CGEN $ARTW ~
Stock Dawgzz
24 Apr 15 16:22:11
Our Penny Stock Picks Gained 1472% In 2 Months! Get Access To Our New Pick: http://t.co/XxqN9Mxu5P $CSIQ $LLEN $REGN
Rodriguez Donna
24 Apr 15 15:31:48
@LucretiaMcEvel $CSIQ ...Market Guru leratton bought CSIQ - https://t.co/890wBDukgs
Jack Trader
24 Apr 15 15:31:40
$CSIQ Is Canadian Solar Inc.&#39;s Stock a Buy? http://t.co/YdCURld0oC
Lucretia
24 Apr 15 15:31:36
$CSIQ The Biggest Threats to Canadian Solar Inc http://t.co/KDZueUlsHP
jim50
24 Apr 15 15:23:51
Do you follow $CSIQ Click Here: http://t.co/L9BSpTDLn4 Also See: $TYL $EA $CMCSK $POOL ~
Jake13
24 Apr 15 11:58:04
$PTX Chart Click Here: http://t.co/KLj99QKgnI Also See: $CSIQ $COL $DST $RENN ~
Quantcha
24 Apr 15 10:08:44
Covered Call Alert: CANADIAN SOLAR $CSIQ returning up to 24.24% through 16-Oct-2015 http://t.co/zUm6WaN0jg
Capital Market Labs
24 Apr 15 08:21:41
$CSIQ Revenue is Growing. #CML_CSIQ #CML_Revenue http://t.co/w3J2I9kNzN http://t.co/3ykcvhCKBq
Joe Hentges
24 Apr 15 07:21:41
Market Wrap from last night http://t.co/RG8I04cFXJ $DXY $TLT $USL $GLD $X $CSIQ
iHangout
24 Apr 15 07:21:35
$EOG Chart Click Here: http://t.co/spXvUvpNPH Also See: $CHMT $CSIQ $MDC $SXC ~
Rodriguez Donna
24 Apr 15 06:32:45
@stocktapa $CSIQ ...Market Guru leratton bought CSIQ - https://t.co/890wBDukgs
Rodriguez Donna
24 Apr 15 06:32:34
@StockSpider $CSIQ ...Market Guru leratton bought CSIQ - https://t.co/890wBDukgs
Stocktapa
24 Apr 15 06:32:25
$CSIQ Canadian Solar still a bargain even after surge to top of Nasdaq http://t.co/QgAvx1TybO
Peter Parker
24 Apr 15 06:32:24
$CSIQ The Biggest Threats to Canadian Solar Inc http://t.co/TQLQbmukLc
Alexandros Yfantis
24 Apr 15 02:31:52
$CSIQ http://t.co/N4WRIvxV9J
Rodriguez Donna
24 Apr 15 02:31:38
@alexanderYf $CSIQ ...Market Guru leratton bought CSIQ - https://t.co/890wBDukgs
				
				
By  +Follow March 5, 2014 2:45PM
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