Canadian Solar Inc. (CSIQ) Misses Earnings, Though Posts Optimistic Guidance

Jacob Harper |


Solar panel manufacturer Canadian Solar (CSIQ) issued their third quarter earnings before the bell on Nov. 13, and the report contained mostly positive news. While the company missed earnings estimates, Canadian Solar posted better-than-expected revenues, provided a rosy outlook, and most cogent to stockholder's concerns, returned to profitability for the first time in nine quarters, renewing investor confidence and sending shares skyward.

A wide swath of the solar energy sector is experiencing a surge, as more consumers look to alternative energy to supplement or replace traditional energy resources. First Solar (FSLR) , SunPower (SPWR) , and SolarCity Corporation (SCTY) have all experienced a stellar year as the global demand for solar energy increases exponentially.

Indeed, Canadian Solar’s recent success can be attributed to international demand, with 43.6 percent of sales going to Asia and nearly one-third of revenue coming from Japan alone. The company also engineered the sale of two major solar power plants to BlackRock Inc. (BLK) , which buoyed revenue substantially.

For their third quarter 2013 earnings report, Canadian Solar reported a net gain of $27.7 million, or $0.56 per share, versus the net loss of $43.7 million, or $1.01 per share, from the same period a year ago. Revenue for the quarter was $490.9 million, as compared to $326 million from the same quarter the previous year. Analysts were expecting a net gain of $0.60 per share on revenues of $483 million.

Canadian Solar rose on the increasing revenues and return to profitability, gaining 12.22 percent in midday trading to hit $31.66 a share.

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

Companies

Symbol Name Price Change % Volume
BLK BlackRock Inc. 377.35 -0.65 -0.17 456,077
SPWR SunPower Corporation 6.87 -0.17 -2.41 2,916,749
SCTY SolarCity Corporation n/a n/a n/a 0
FSLR First Solar Inc. 34.42 0.01 0.03 1,460,340
CSIQ Canadian Solar Inc. 12.49 0.05 0.40 774,714
PRSHF PRISM RESOURCES INC n/a n/a n/a 0

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