Canadian Solar Inc.
) reported first quarter 2013 results with adjusted loss per
share of 10 cents much narrower than a loss of 49 cents in the
first quarter of 2012 and a loss of $1.01 in the fourth quarter
In the reported quarter, Canadian Solar posted revenues of $263.6
million, beating the Zacks Consensus Estimate of $247 million.
Revenues were down from $325.8 million in the first quarter of
Total solar module shipments in the first quarter were 340
megawatt (MW), compared with 404 MW in the fourth quarter of 2012
and 343 MW in the first quarter of 2012. Total solar module
shipments included 23 MW from the company's total solutions
business, compared with 16 MW in the fourth quarter of 2012 and 7
MW in the first quarter of 2012.
Solar module shipments to Japan were up 75.9% sequentially and
represented 24.5% of total solar module shipments.
Revenues from the European market in the reported quarter
accounted for 24.7% of total sales, down from 40.6% in fourth
quarter 2012. Also, in real terms, revenues from the European
market decreased to $65 million from $119.7 million in fourth
quarter of 2012.
Revenues from America accounted for 17.9% of total sales, down
from 20% in fourth quarter 2012. The company generated $47.1
million in revenues from America in the reported quarter compared
with $58.8 million in fourth quarter 2012.
Asia and others accounted for $151.5 million of revenues,
compared with $116.3 million in the fourth quarter of 2012. This
represents 57.4% of total sales versus 39.4% in fourth quarter of
Gross profit in the first quarter of 2013 was $25.6 million,
compared with $14.9 million in the fourth quarter of 2012 and
$25.1 million in the year-ago period. The sequential increase
reflects stable average selling price and lower inventory
write-offs partially offset by lower shipment volume. The
year-over-year increase is attributable to lower manufacturing
cost partially offset by the decline in average selling price
during the period.
Total operating expenses were $7.5 million, compared with $106.4
million in the fourth quarter of 2012 and $38.5 million in the
first quarter of 2012.
Selling expenses were $18.8 million, down 24.8% from $25 million
in fourth quarter 2012 and 7.6% from $23.3 million in the first
quarter of 2012. Research and development expenses were $2.4
million, down 21.9% from $3.1 million in the fourth quarter of
2012 and down 19.4% from $3.0 million in the first quarter of
Canadian Solar reported cash, cash equivalents and restricted
cash of $606.1 million at the end of the reported period, up from
$564.3 million as of Dec 31, 2012. Long-term debt declined to
$205.3 million from $214.6 million as of Dec 31, 2012.
For the second quarter of 2013, the company expects photovoltaic
module shipments in the range of approximately 380 MW to 420 MW,
with gross margin expected to be between 9% and 11%.
For the full year 2013, the company expects photovoltaic module
shipments in the range of approximately 1.6 gigawatt (GW) to 1.8
At the Peer
) reported loss per American Depositary Share ("ADS") of 45 cents
per share, wider than the Zacks Consensus Estimate of a loss of
39 cents per ADS. However, its first-quarter loss narrowed from
the year-ago quarterly loss of 47 cents per ADS due to lower
operating expenses and higher solar module shipments.
Canadian Solar Inc. is one of the world's largest solar
companies. The company is progressing with its own utility-scale
solar projects as well as other solar projects, which it is
constructing as an Engineering, Procurement and Construction
contractor. Also, the company caters to a geographically-diverse
customer base spread across its key markets in Germany, Spain and
the U.S., as well as emerging market opportunities in France, the
Czech Republic, Italy, South Korea, Canada, Japan and China.
Stocks worth considering in the solar space are
Trina Solar Limited
JA Solar Holdings Co., Ltd.
), both with a Zacks Rank #2 (Buy).
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