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Canadian Solar (CSIQ) Q4 Earnings & Sales Miss Estimates

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Canadian Solar Inc. CSIQ reported fourth-quarter 2017 earnings of $1.01 per share, missing the Zacks Consensus Estimate of $1.03 by 2%. The company had reported a loss of 23 cents per share in the year-ago period.

Canadian Solar Inc. Price, Consensus and EPS Surprise

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

Total Revenues

Solar cell manufacturer, Canadian Solar posted total revenues of $1.1 billion in the quarter, which also missed the Zacks Consensus Estimate of $1.5 billion by 24.8%. The top line was however up a solid 65.9% from $668.4 million reported in fourth-quarter 2016.

Operational Update

Solar module shipments in the quarter totaled 1,831 megawatts (MW), up 13.6%, from the year-ago level of 1,612 MW. The figure exceeded management's guidance range of 1,720-1,820 MW.

Gross profit was $218.6 million, up 346.1%, from the year-ago level of $49 million. Gross margin was 19.7% in the quarter compared with 7.3% in the prior-year quarter.

Total operating expenses were $88.4 million, up 45.6% year over year. Selling expenses totaled $39.9 million, down 6.6% year over year. General and administrative expenses were $69.7 million, up 10.8% year over year. Research and development expenses were $8.6 million compared with $3.2 million a year ago.

Interest expenses were $33.5 million, up from $22.9 million recorded a year ago.

Financial Update

As of Dec 31, 2017, cash and cash equivalents were $561.7 million, up from $511 million as of Dec 31, 2016.

Long-term debt as of Dec 31, 2017, was $404.3 million, down from $493.5 million as of Dec 31, 2016.

Guidance

For first-quarter 2018, Canadian Solar expects shipments in the range of 1.30-1.35 gigawatts (GW). Total revenues are projected in the range of $1.37-$1.40 billion along with gross margin in the 10-12% range.

Canadian Solar's total module shipments in 2018 are anticipated to be in the range of 6.6-7.1 GW. Total revenues are expected to be in the range of $4.4-$4.6 billion.

Zacks Rank & Key Pick

Canadian Solar carries a Zacks Rank #5 (Strong Sell).

A better-ranked stock in the same place is SolarEdge Technologies SEDG , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

SolarEdge delivered an average positive earnings surprise of 31.99% in trailing four quarters. It has a solid long-term EPS growth rate of 24%.

Peer Releases

First Solar FSLR reported fourth-quarter 2017 adjusted loss of 25 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 32 cents by 21.9%.

Enphase Energy ENPH delivered fourth-quarter 2017 adjusted earnings of 1 cent per share, which compares favorably with the Zacks Consensus Estimate of breakeven earnings.

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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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