Canadian Solar (CSIQ) Q3 Earnings In Line, Revenues Beat

Solar cell manufacturer, Canadian Solar Inc. (NASDAQ:CSIQ) reported third-quarter 2017 adjusted earnings of 22 cents per share, in line with the Zacks Consensus Estimate. The figure was lower than earnings of 27 cents per share recorded a year ago.

Total Revenue

Canadian Solar posted total revenues of $912.2 million in the quarter, which surpassed the Zacks Consensus Estimate of $819 million by 11.4%. The top line was also up 38.8% from $657.3 million reported in the third quarter of 2016.

Operational Update

Solar module shipments in the quarter totaled 1,870 megawatts (MW), up 7.2%, from the year-ago level of 1,745 MW. The figure also exceeded management’s guidance range of 1,650 MW to 1,700 MW.

Gross profit was $159.8 million, up 36.2%, from the year-ago level of $117.3 million. Gross margin was 17.5% in the quarter compared with 17.8% in the prior-year quarter.

Total operating expenses were $102 million, up 13% year over year. Selling expenses totaled $42.8 million, up 26.1%. General and administrative expenses were $53.3 million, slightly up from $52.5 million. Research and development expenses were $7.3 million compared with $4.6 million a year ago.

Interest expenses were $33.7 million, up from $18.8 million recorded in a year ago.

Canadian Solar Inc. Price, Consensus and EPS Surprise

Canadian Solar Inc. Price, Consensus and EPS Surprise | Canadian Solar Inc. Quote

Financial Update

As of Sep 30, 2017, cash and cash equivalents were $614.6 million, up from $511 million as of Dec 31, 2016.

Long-term debt as of Sep 30, 2017, was $318.2 million, down from $493.5 million as of Dec 31, 2016.

Guidance

For fourth-quarter 2017, Canadian Solar expects shipments in the band of 1.65-1.75 gigawatts (GW). Total revenues are projected in the range of $1.77-$1.81 billion along with gross margin in the 10.5-12.5% band.

Canadian Solar’s total module shipments in 2017 are now anticipated to be in the range of 6.7 GW to 6.8 GW, up from 6.0 GW to 6.5 GW, projected earlier. Total revenues are expected to be in the range of $4.05-$4.09 billion

Zacks Rank

Canadian Solar carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Peer Releases

SunPower Corp. (NASDAQ:SPWR) reported third-quarter 2017 earnings of 21 cents per share. The Zacks Consensus Estimate was pegged at a loss of 36 cents. In the year-ago period, the company had reported earnings of 88 cents per share.

First Solar Inc. (NASDAQ:FSLR) reported third-quarter 2017 adjusted earnings of $1.95 per share, beating the Zacks Consensus Estimate of 85 cents by a whopping 129.4%. The reported number also improved 60% from the prior-year figure of $1.22.

8point3 Energy Partners LP (NASDAQ:CAFD) reported earnings of 27 cents per share in third-quarter fiscal 2017 (ended Aug 31), which missed the Zacks Consensus Estimate of 65 cents by 58.5%. The bottom line also declined 40.7% from 38 cents in the year-ago period.

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