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Canadian Solar (CSIQ) Incurs Narrower-Than-Expected Q2 Loss

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Solar cell manufacturer, Canadian Solar Inc.CSIQ , witnessed second-quarter 2017 adjusted loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 16 cents. In the year-ago quarter, the company posted earnings of 68 cents.

Barring the adjustments, the company posted an earnings of 63 cents per share.

Total Revenue

Canadian Solar recorded total revenue of $692.4 million in the reported quarter, which surpassed the Zacks Consensus Estimate of $623 million by 11.1%. However, the top line was down 14.1% from $805.9 million reported in the prior-year quarter.

Of the total revenue, the American markets comprised 21.7%, Asia represented 65.3%, and the European and other markets contributed 13% compared with the respective year-ago contributions of 47.6%, 39.5% and 12.9%.

Operational Update

Solar module shipments in the quarter totaled 1,745 megawatts (MW), up 35.3%, from the year-ago level of 1,290 MW. The figure also exceeded management's guidance range of 1,530 MW -1,580 MW.

Gross profit was $167.8 million, up 21.2%, from the year-ago level of $138.5 million. Gross margin was 24.2% in the quarter compared with 17.2% in the prior-year quarter.

Total operating expenses were $84.1 million, up 15% year over year. Operating expenses decreased as it recorded other operating income of $15.5 million.

Selling expenses totaled $39.3 million in the reported quarter, up 16.1%. General and administrative expenses were $53 million, slightly up from $52.9 million. Research and development expenses were $7.3 million compared with $5.1 million a year ago.

Interest expenses were $26.7 million, up from the year-ago level of $11.9 million.

Canadian Solar Inc. Price, Consensus and EPS Surprise

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

Financial Update

As of Jun 30, cash and cash equivalents were $961.6 million, up from $511 million as of Dec 31, 2016.

Long-term debt as of Jun 30 was $273 million, down from $493.5 million as of Dec 31, 2016.

Guidance

For third-quarter 2017, Canadian Solar expects shipments in the band of 1.65−1.70 gigawatts (GW). Total revenue is projected in the range of $805−$825 million, along with gross margin of 15-17%.

Canadian Solar's total module shipments in 2017 are still anticipated to be in the range of 6.0 GW-6.5 GW.

Zacks Rank

Canadian Solar currently 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. SPWR incurred second-quarter 2017 loss of 39 cents per share, narrower than the Zacks Consensus Estimate of a loss of 63 cents. In the year-ago period, the company had witnessed a loss of 33 cents.

8point3 Energy Partners LP CAFD reported earnings of 12 cents per share in second-quarter fiscal 2017 (ended May 31, 2017), missing the Zacks Consensus Estimate of 16 cents by 25%.

First Solar Inc. FSLR reported second-quarter 2017 earnings of 64 cents a share. The Zacks Consensus Estimate was pegged at a loss of 4 cents. The reported figure declined 26.4% from the prior-year figure of 87 cents.

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First Solar, Inc. (FSLR): Free Stock Analysis Report

SunPower Corporation (SPWR): Free Stock Analysis Report

Canadian Solar Inc. (CSIQ): Free Stock Analysis Report

8point3 Energy Partners LP (CAFD): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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