Canadian Solar (CSIQ) Q4 Earnings Beat Estimates, Fall Y/Y

Canadian Solar Inc. (NASDAQ:CSIQ) reported adjusted fourth-quarter 2019 earnings of $1.04 per share, which surpassed the Zacks Consensus Estimate of 55 cents by 89.1%. The figure however declined 35.4% from the year-ago level.

Including one-time items, GAAP earnings came in at $1.12 per share in the quarter under review compared with $1.81 in fourth-quarter 2018.

For 2019, the company reported adjusted earnings of $2.19 per share, which missed the Zacks Consensus Estimate of $2.27. The full-year bottom line also declined significantly from the year-ago figure of $3.28.

Canadian Solar Inc. Price, Consensus and EPS Surprise

Canadian Solar Inc. Price, Consensus and EPS Surprise

Canadian Solar Inc. price-consensus-eps-surprise-chart | Canadian Solar Inc. Quote

Total Revenues

This solar cell manufacturer’s total revenues of $919.7 million beat the Zacks Consensus Estimate of $869 million by 5.8%. The top line also rose 2.1% from $901 million reported in fourth-quarter 2018. The top line also exceeded the guidance of $850-$880 million.

The year-over-year improvement is attributable to solid module shipments.

For 2019, the company reported revenues of $3.20 billion, exceeding the Zacks Consensus Estimate of $3.15 billion by a whisker. The top line however declined 14.5% from $3.74 billion reported in 2018. Nevertheless, the full-year top line exceeded the company’s guidance of $3.13-$3.16 billion.

Operational Update

Solar module shipments in the quarter totaled 2,474 megawatts (MW), which exceeded the guided range of 2,300-2,400 MW.This included 295 MW for the company's utility-scale solar power projects

Gross margin was 23% in the quarter (excluding the benefits of U.S. anti-dumping and countervailing duty).

Total operating expenses were $118.1 million, down 12.4% year over year. The decrease in operating costs in the reported quarter was due to lower general and administrative expenses as well as research and development expenses.

Interest expenses were $19.7 million, down from $23 million recorded in the year-ago period.

Financial Update

As of Dec 31, 2019, cash and cash equivalents totaled $668.7 million, up from $444.3 million on Dec 31, 2018.

Long-term borrowings as of Dec 31,2019 were $619.5 million, up from $393.6 million on Dec 31, 2018.

Guidance

For first-quarter 2020, Canadian Solar expects shipments in the range of 2.15-2.25 GW. This guidance includes approximately 250 MW of shipments to its utility-scale solar power projects that may not be recognized as revenues in the first quarter. Total revenues are projected within $780-$810 million, while gross margin is expected in the band of 26-28%.

The Zacks Consensus Estimate for the company’s first-quarter revenues is pegged at $939 million, higher than the company guided range.

For 2020, Canadian Solar expects total module shipments in the range of 10-12 GW. Total revenues for the year are expected in the range of $3.4-$3.9 billion. The Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at $3.99 billion, higher than the company guided range.

Zacks Rank

Canadian Solar currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Q4 Release of Other Solar Players

First Solar (NASDAQ:FSLR) reported fourth-quarter 2019 adjusted earnings of $2.02 per share, which missed the Zacks Consensus Estimate of $2.79 by 27.6%.

Enphase Energy (NASDAQ:ENPH) reported fourth-quarter 2019 adjusted earnings of 39 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 18.2%.

SolarEdge Technologies (NASDAQ:SEDG) reported fourth-quarter 2019 adjusted earnings of $1.65 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 26.9%.

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