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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
KelownaShan
31 Oct 14 14:55:00
$CSIQ Whose going to hold through earnings? What about FSLR?
Kym L
31 Oct 14 14:44:36
@johnnyangel9 I mentioned $SCTY and $CSIQ this morning. Nice moves and $SCTY has earnings next week. I'm making my way thru charts now
Antonio Costa
31 Oct 14 14:22:44
$CSIQ Daily short sale volume over the last month http://t.co/cOtN21mZxV
clayton
31 Oct 14 14:21:40
$LNG 52Wk Low Click Here: http://t.co/1GBoYMnRYG Also See: $GLW $CENX $NM $CSIQ ~
Xetsu
31 Oct 14 12:51:54
think solar will be hot next few weeks $CSIQ $FSLR $SPWR
BiGGsY™
31 Oct 14 12:41:29
$csiq $spwr $scty $fslr scooped this morning..
Stock Relay
31 Oct 14 12:21:56
$JNUG 52Wk High Click Here: http://t.co/3I0fmq9drj Also See: $SLB $CSIQ $SVXY $ANV ~
John Ablemann
31 Oct 14 12:01:49
$CSIQ Canadian Solar Inc. (CSIQ), the biggest North American solar... http://t.co/2HJ9cAasSx
Kym L
31 Oct 14 10:31:53
$CSIQ also noted this am - nice
InvestProfits
31 Oct 14 10:21:02
Canadian Solar Inc. (CSIQ) More Long Than Short, Bullish Sign? http://t.co/r668idjlaj $CSIQ #investor #stocks #investing
Stock Relay
31 Oct 14 10:10:13
$INFN 52Wk High Click Here: http://t.co/oDirw60Fgr Also See: $CSIQ $RSP $CAT $SRPT ~
Media Sentiment
31 Oct 14 09:39:51
$CSIQ received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 364
Stockaholics
31 Oct 14 09:39:24
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $CSIQ $LLEN $REGN
Market Int Center
31 Oct 14 09:37:06
Canadian Solar $CSIQ Showing Bearish Technicals ( http://t.co/8eroKSi7c4 )
Robert Lesnicki
31 Oct 14 09:27:15
Notable October seasonality winners: $SAFT $STMP $MA Notable losers: $IMOS $HIMX $CSIQ >> http://t.co/ExS76uJyxz
Jeff Focker
31 Oct 14 08:52:33
sold 75% $CSIQ ..raised stops on rest to 29.9
Abhishek Shetty
31 Oct 14 08:22:37
$CSIQ UP 6% $31.55..ADVISED @ $29.55.GOOD MOVE..GOOD VOLUMES.LEVELS OF $33-35 TO COME.
Dharmesh
31 Oct 14 08:20:23
$CSIQ moving up
Mr. Moreno
31 Oct 14 08:18:04
I Have Some FREE Little bull flag for possible runners and running $TSL $CSIQ $FNSR $AER $PWR $WDR Enjoy. :)
Theneeds Stocks
31 Oct 14 08:15:18
RT @ACInvestorBlog: $FSLR $YGE $CSIQ $JKS $HSOL $JASO EU mulling anti-circumvention measures on Asia solar exports, says report http://t.co…
Sarcasm Bot
31 Oct 14 08:00:48
$CSIQ I just don't get it. CSIQ is forecasting large increases in production for the rest of 2014 & more in 2015. They stated just…
Large Void Bot
31 Oct 14 08:00:28
Popular: $SBUX, $GDX, $SLCA, $CSIQ, $AMED, $WETF, $ANET, $CODE, $FXY, $NOAH, $DIS, $RTH
clayton
31 Oct 14 07:49:03
$GLD Financials Click Here: http://t.co/HSGPALAqqO Also See: $IBB $CSIQ $C $CELG ~
Abhishek Shetty
31 Oct 14 07:41:21
$CSIQ $TSL $SCTY $JKS ALL SOLARS PERFORMING WELL..BEAUTIFUL MOVE THIS..AS SAID..COULD SEE A BIG MOVE IN ALL OF THESE..GREAT TIME TO BUY..!!
Stock Relay
31 Oct 14 07:31:56
$GOOGL Quotes Click Here: http://t.co/p0yzKyFDvC Also See: $BAC $RSX $CSIQ $FNMA ~
Stock Relay
31 Oct 14 07:31:13
$GPRO Day High Click Here: http://t.co/Mx1Ub2be1M Also See: $SPLK $CSIQ $GE $VOIS ~
Trader Bob
31 Oct 14 07:25:54
Fri ALL BUY ORDERS already bot $RMBS $RTEC $CSIQ $UNXL $BITA $EXPE $LVLT $AMBA $aNAC http://t.co/7e7kOdc5Ev
Trader Bob
31 Oct 14 07:23:52
Fri ALL BUY ORDERS already bot $RMBS $RTEC $CSIQ $UNXL $BITA $EXPE $LVLT $AMBA $ANAC http://t.co/Q4JFtIQ3HZ
Trader Bob
31 Oct 14 07:22:28
Fri ALL BUY ORDERS already bot $RMBS $RTEC $CSIQ $UNXL $BITA $EXPE $LVLT $AMBA $ANAC http://t.co/cWDMsX09Hn
Kym L
31 Oct 14 07:20:19
$SCTY nice $CSIQ might want to follow
Stock Relay
31 Oct 14 07:19:38
$GOOGL 52Wk Low Click Here: http://t.co/ZqUGOu5QxL Also See: $HYG $GLD $APT $CSIQ ~
Analyst Ratings
31 Oct 14 07:15:50
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Penny Stock Secret
31 Oct 14 06:46:32
The Hottest Way to Make Millions From Stock Market.Click HERE http://t.co/SVqoMkrw2z .. $CSIQ $LLEN $REGN
Harry Walkman
31 Oct 14 05:32:48
$CSIQ Canadian Solar Inc. (CSIQ) Strikes 146.4 MW Honduras Deal - Analyst Blog http://t.co/j4u5a7fSLo
Thomas Collins
31 Oct 14 05:32:46
$CSIQ Canadian Solar Inc. (CSIQ), the biggest North American solar... http://t.co/JrBJZI3M0u
James Erdmier
31 Oct 14 05:18:58
Among the strong stocks: $GPRO $LNKD $MBLY $CSIQ $JKS $QIHU $FSLR $SPLK...list goes on and on
Abhishek Shetty
31 Oct 14 04:13:42
$CSIQ $29.75 EXCELLENT CHARTS..GOOD CONSOLIDATION.WE COULD SEE A GOOD UPMOVE IN THIS ONE.LEVELS OF $32.50-35.00 CAN BE SEEN.GOOD TIME TO BUY
Ani Anirudhan
31 Oct 14 03:44:38
RT @ACInvestorBlog: $FSLR $YGE $CSIQ $JKS $HSOL $JASO EU mulling anti-circumvention measures on Asia solar exports, says report http://t.co…
Alex Galan
31 Oct 14 02:21:21
RT @ACInvestorBlog: $FSLR $YGE $CSIQ $JKS $HSOL $JASO EU mulling anti-circumvention measures on Asia solar exports, says report http://t.co…
Antonio Costa
31 Oct 14 02:18:45
$FSLR $YGE $CSIQ $JKS $HSOL $JASO EU mulling anti-circumvention measures on Asia solar exports, says report http://t.co/X3HRgAFFg8
Stockaholics
31 Oct 14 01:52:48
Our Penny Stock Newsletter Alert On MGON Closed up 112.5% Today! Major News: http://t.co/dvxYQnSJab $CSIQ $LLEN $REGN
Langan Stocks
31 Oct 14 01:16:18
$DDD Exchange Click Here: http://t.co/NIsyJIqjTJ Also See: $RGLD $TWTR $CSIQ $DDD ~
lookn4wins
31 Oct 14 01:14:21
$DBC E.P.S. Click Here: http://t.co/sxX6cKF1TQ Also See: $TAN $CSIQ $ORCL $EFA ~
IH News Desk
31 Oct 14 00:26:08
$CSIQ EOD Data Click Here: http://t.co/57BWpwzWbF Also See: $QCOM $MBLY $VLO $HGD.TO ~
lookn4wins
31 Oct 14 00:22:05
$CSIQ Volume Click Here: http://t.co/wjfDge6vWH Also See: $MHYS $TNA $GPRO $AMZN ~
clayton
31 Oct 14 00:19:42
$CSIQ Bid Size Click Here: http://t.co/pwnSWhysBN Also See: $FXI $IBB $MYEC $SFRX ~
IH News Desk
31 Oct 14 00:16:07
$CSCO Dividend Click Here: http://t.co/3j2RCKaz6a Also See: $RFMD $CSIQ $DRYS $WFC ~
PolgarStocks
31 Oct 14 00:14:25
$CSIQ Stock Forum Click Here: http://t.co/FvteVKDdjm Also See: $DRYS $IYT $FNV $TASR ~
Jake13
31 Oct 14 00:14:07
$CSIQ % Change Click Here: http://t.co/bj1pTHwmyo Also See: $XOM $CAT $FNMA $RIG ~
Langan Stocks
31 Oct 14 00:09:25
$CSIQ 52Wk Low Click Here: http://t.co/2EcqsD2S7j Also See: $TIP $VMW $XLB $CTIX ~
				
				
By  +Follow March 5, 2014 2:45PM
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