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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.


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Results for CSIQ
BreakingStocksNews
1 Mar 15 04:16:02
$JASO $JKS $CSIQ: Axiom Capital: Chinese Solar Sector 'Ripe' For Shorting: http://t.co/7Zk7pqXOYv
Trade Archer
28 Feb 15 18:08:14
RT @LeRatton: “@YahooFinance: Solar stocks could see a boost as more companies follow Apple http://t.co/0AK77HtB94” $csiq $fslr $scty
danielo
28 Feb 15 18:04:42
“@YahooFinance: Solar stocks could see a boost as more companies follow Apple http://t.co/0AK77HtB94” $csiq $fslr $scty
IH News Desk
28 Feb 15 07:03:26
$GRCU Company Info Updated Saturday, February 28, 2015 09:10:59 AM $CSIQ $SWKS $SLV $FNMA http://t.co/n3bu3UcnUS
Penny Stock Secret
28 Feb 15 06:24:28
Yesterday We Made $89,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $CSIQ $LLEN $REGN
IH News Desk
28 Feb 15 06:02:17
$RIG Filings Updated Saturday, February 28, 2015 08:11:00 AM $JNK $SMH $CSIQ $ABT http://t.co/GoYYJbYJwM
Langan Stocks
28 Feb 15 05:05:12
$BYSD Stock Message Board Updated Saturday, February 28, 2015 07:03:15 AM $CSIQ $BAA $GRCU $DAL http://t.co/yjKvSSD7t0
IH News Desk
28 Feb 15 05:01:41
$SOXL Financials Updated Saturday, February 28, 2015 07:10:59 AM $TVIX $CSIQ $UTX $SMH http://t.co/mBsRdLsZMl
Langan Stocks
28 Feb 15 02:01:13
$RSP Stock Price Updated Saturday, February 28, 2015 04:03:15 AM $CSIQ $LUV $UGA $CLNE http://t.co/AJHqgaC5Fn
IH News Desk
28 Feb 15 01:59:10
$JCP Stock Price Updated Saturday, February 28, 2015 04:11:00 AM $VTI $IJJP $FSLR $CSIQ http://t.co/jxtHGA2nU6
Kapoor
28 Feb 15 01:41:43
$CSIQ huge resistance at 30.52 area can pull back, but the next level after that next rest area is at 34..Bullish
Rosner Stocks
28 Feb 15 00:58:23
$TZA News Updated Saturday, February 28, 2015 02:59:22 AM $MMM $EFA $EWZ $CSIQ http://t.co/LujRrAYRPy
Rosner Stocks
27 Feb 15 23:57:29
$SLV Stock Price Updated Saturday, February 28, 2015 01:59:23 AM $ACOR $GE $CSIQ $CTIC http://t.co/B3vjDVMhEG
Rosner Stocks
27 Feb 15 22:57:32
$XLU News Updated Saturday, February 28, 2015 00:59:22 AM $CSCO $GLD $CSIQ $GE http://t.co/U920XbhYh8
Stockaholics
27 Feb 15 22:39:07
Our Penny Stock Picks Gained Over 342% In 2 weeks! Get Our Next Alerts Early: http://t.co/iPnInrsUzz $CSIQ $LLEN $REGN
IH News Desk
27 Feb 15 21:55:08
$MNKD Stock Price Updated Saturday, February 28, 2015 00:10:59 AM $CSIQ $AXP $SBUX $MU http://t.co/SC5R7JI4DD
Rosner Stocks
27 Feb 15 20:54:38
$RSX Recent News Updated Friday, February 27, 2015 10:59:22 PM $CSIQ $TVIX $HAL $KO http://t.co/kw8rWoxBze
Carmen Hill
27 Feb 15 20:37:37
Canadian Solar Inc $CSIQ generates return on equity of 36.14 %: http://t.co/5LgHz0ZCgp
IH News Desk
27 Feb 15 19:54:14
$ZIOP Filings Updated Friday, February 27, 2015 10:10:59 PM $AUY $BLTA $SLV $CSIQ http://t.co/eRN0k84DV4
Rosner Stocks
27 Feb 15 19:54:10
$BIDU Stock Price Updated Friday, February 27, 2015 9:59:23 PM $FB $COH $XLF $CSIQ http://t.co/Xmd9nUGNdh
IH News Desk
27 Feb 15 19:54:09
$WMIH Stock Message Board Updated Friday, February 27, 2015 10:10:59 PM $CSIQ $GMCR $SD $TASR http://t.co/ny017V0GZX
Stock Rocket
27 Feb 15 18:53:49
Our Penny Stock Picks Gained Over 342% In 2 weeks! Get Our Next Alerts Early: http://t.co/WWiSMpV7jj $CSIQ $LLEN $REGN
PolgarStocks
27 Feb 15 18:51:15
$CSIQ Reviews Updated Friday, February 27, 2015 9:07:07 PM $UVXY $CTIC $NWBO $FNMA http://t.co/SYpmjJb2tB
Rosner Stocks
27 Feb 15 17:48:32
$XLV Recent News Updated Friday, February 27, 2015 7:59:22 PM $CAT $CSIQ $GILD $IAG http://t.co/iWX9Z1Ykmz
IH News Desk
27 Feb 15 17:48:23
$SLV News Updated Friday, February 27, 2015 8:10:58 PM $HD $MINE $CSIQ $AMGN http://t.co/fjqeuSW2hU
Rosner Stocks
27 Feb 15 16:43:44
$CSIQ Last Price Updated Friday, February 27, 2015 6:59:22 PM $PBR $CVX $EGO $GLD http://t.co/HtSmL92A0j
Jeffrey Blake
27 Feb 15 15:01:19
$CSIQ Why Shares of Canadian Solar Inc. Popped 26% Today http://t.co/u3nIHtQ9c2
Chayton Falke
27 Feb 15 14:15:02
Top Twenty Recent Exits #5: Sold $CSIQ long for a 48.35% gain in 22 days. #trading #CSIQ #forex #stocks
clayton
27 Feb 15 12:40:50
CSIQ 29.51 Canadian Solar Inc $CSIQ added to my watch list. Right now with CSIQ I am watching the last price 2 http://t.co/xatDvTHThx
clayton
27 Feb 15 12:40:28
$CSIQ CSIQ 29.51 Canadian Solar Inc $CSIQ stock added to my watch list. Right now with CSIQ I am watching the last p http://t.co/JBu0aqKJf4
Stockaholics
27 Feb 15 12:38:04
Our Penny Stock Picks Gained Over 342% In 2 weeks! Get Our Next Alerts Early: http://t.co/iPnInrsUzz $CSIQ $LLEN $REGN
danrocks
27 Feb 15 11:01:10
Right now CSIQ is number 182 for the largest percentage gain out of 250 stocks. $CSIQ CSIQ is up +2.18% in the http://t.co/4WmrDUqKPv
danrocks
27 Feb 15 11:00:48
$CSIQ CSIQ Stock is number 182 for the largest percentage gain out of 250 stocks. $CSIQ CSIQ is up +2.18% in the las http://t.co/n8RLduPDX5
Market Int Center
27 Feb 15 07:51:31
Potential Canadian Solar $CSIQ Trade Has 20.63% Downside Protection ( http://t.co/ALv1YrfrKI )
Stock Rocket
27 Feb 15 07:49:07
Our Penny Stock Picks Gained Over 342% In 2 weeks! Get Our Next Alerts Early: http://t.co/WWiSMpV7jj $CSIQ $LLEN $REGN
Media Sentiment
27 Feb 15 05:07:51
$CSIQ received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 122
Benzinga.com
27 Feb 15 05:06:10
Axiom Capital: Chinese #Solar Sector 'Ripe' For Shorting $CSIQ $JASO $JKS $TSL $YGE http://t.co/z6DZMT1k9F
Chayton Falke
27 Feb 15 04:15:02
Top Twenty Recent Exits #5: Sold $CSIQ long for a 48.35% gain in 22 days. #trading #CSIQ #forex #stocks
BreakingStocksNews
27 Feb 15 03:56:05
$CSIQ: Technology Stocks News Recap-Canadian (CSIQ), Take-Two ...: http://t.co/3Jae7RuAWp
Chayton Falke
26 Feb 15 18:15:06
Top Twenty Recent Exits #5: Sold $CSIQ long for a 48.35% gain in 22 days. #trading #CSIQ #forex #stocks
Stockaholics
26 Feb 15 16:55:57
$HIPPQ Closed up 275% Yesterday, As One Of The Best Penny Stocks of the Day! Big Update: http://t.co/KKZkbfPf1Q $CSIQ $LLEN $REGN
Market Newswire
26 Feb 15 15:31:44
The Week Ahead: All Eyes on Jobs Data - http://t.co/RbKHBZMyMb $ANF $CSIQ #newsfeed #trading #stock
Anasta Les
26 Feb 15 13:39:33
$GOOG invests $300 mln in #solar. Should you? No doubt. Solar stocks $CSIQ $SCTY $FSLR $SUNE $TSL are trading at discount due to oil.
John Turner
26 Feb 15 12:03:49
$CSIQ Why Shares of Canadian Solar Inc. Popped 26% Today http://t.co/iEbPTk1WYz
Samuel Brown
26 Feb 15 12:03:45
$CSIQ April 10th Options Now Available For Canadian Solar http://t.co/pnYNbblhQe
Stockaholics
26 Feb 15 12:02:54
$HIPPQ Closed up 275% Yesterday, As One Of The Best Penny Stocks of the Day! Big Update: http://t.co/KKZkbfPf1Q $CSIQ $LLEN $REGN
Gregory Bent
26 Feb 15 11:48:40
Time for Sunscreen With Solar ETFs http://t.co/2mwuRai7Jg via @YahooFinance $TAN $FSLR $CSIQ
Investors Hangout
26 Feb 15 10:12:08
lookn4wins: CSIQ +0.03% Stock Charts $CSIQ Canadian Solar http://t.co/sBvYdcAz3j
lookn4wins
26 Feb 15 10:05:20
CSIQ +0.03% Stock Charts $CSIQ Canadian Solar Inc. (NASDAQ) Any opinions on CSIQ? Please reply to this post. L http://t.co/kHoNbwNLQ1
iHangout
26 Feb 15 09:33:06
danrocks: $CSIQ Canadian Solar Inc.: CSIQ Stock is number 111 for the largest http://t.co/fs7wWecnb9
				
				
By  +Follow March 5, 2014 2:45PM
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