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.
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