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Why Canadian Solar (CSIQ) Could Beat Earnings Estimates Again

Looking for a stock that might be in a good position to beat earnings at its next report? Consider Canadian Solar Inc.CSIQ , a firm in the solar industry, which could be a great candidate for another beat.

This company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. In fact, in these reports, CSIQ has beaten estimates by at least 100% in both cases, suggesting it has a nice short-term history of crushing expectations.

Earnings in Focus

Two quarters ago, CSIQ expected to earn 13 cents per share, while it actually produced earnings of 31 cents per share, making a significant a beat of 138.5%. Meanwhile, for the most recent quarter, the company looked to deliver earnings of 27 cents/share, when it actually saw earnings of 79 cents/share instead, representing a noteworthy 192.6% positive surprise.

Thanks in part to this history, recent estimates have been moving higher for Canadian Solar. In fact, the Earnings ESP for CSIQ is positive, which is a great sign of a coming beat.

After all, the Zacks Earnings ESP compares the most accurate estimate to the broad consensus, looking to find stocks that have seen big revisions as of late, suggesting that analysts have recently become more bullish on the company's earnings prospects. This is the case for CSIQ, as the firm currently has a Zacks Earnings ESP of 4.84%, so another beat could be around the corner.

This is particularly true when you consider that CSIQ has a great Zacks Rank #2 (Buy) which can be a harbinger of outperformance and a signal for a strong earnings profile. And when you add this solid Zacks Rank to a positive earnings surprise happens nearly 70% of the time, so it seems pretty likely that CSIQ could see another beat at its next report, especially if recent trends are any guide.

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CANADIAN SOLAR (CSIQ): 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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