How Did Canadian Solar Beat Analysts’ 1Q16 Revenue Estimates?
What Canadian Solar's Strong 1Q16 Could Mean for Investors
Canadian Solar: 1Q16 revenue
In 1Q16, Canadian Solar’s (CSIQ) consolidated revenue came in at around $721 million against analysts’ expectations of about $663 million.
However, its revenue fell by nearly 36% from $1,120 million in 4Q15 and by nearly 16% on year-over-year basis.
Geographical revenue breakdown
The company’s Asia segment reported $320 million in revenue, accounting for 44.4% of total sales, closely followed by the Americas’ $311 million in revenue, accounting for 43.1% of total sales.
Unlike the other two segments, the company’s Europe and Others segment witnessed a rise in its total revenue share on a quarter-over-quarter basis, reporting about $90 million in revenue and claiming a 12.5% share of total revenue.
Meanwhile, the Total Solutions segment, which constructs and manages solar (TAN) power plants, fell to 6.3% of total revenue in 1Q16 compared to 30.7% in 4Q15.
Why was there a deviation?
Canadian Solar’s revenue rise was primarily due to higher-than-anticipated 1Q16 shipments, which resulted in a higher-than-anticipated recognition of shipments in the company’s revenue. According to its filings, Canadian Solar had a 1Q16 shipment guidance of 1,085 MW (megawatts) to 1,135 MW. Its shipments came in at 1,198 MW.
Canadian Solar’s revenue from the sale of electricity in 1Q16 totaled $10.2 million compared to $13.6 million in 4Q15.
First Solar (FSLR), SunEdison (SUNEQ), SunPower (SPWR), Yingli, JA Solar Holdings, and Trina Solar are some of Canadian Solar’s major competitors.
Now let’s look at Canadian Solar’s 1Q16 cost performance.
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