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Canadian Solar (CSIQ) to Post Q2 Earnings: What's in Store?

Canadian Solar Inc. CSIQ is expected to report second-quarter 2020 results on Aug 7, before market open.

In the last reported quarter, the company delivered an earnings surprise of 20.69%. In the trailing four quarters, the company came up with an earnings surprise of 79.89%, on average.

Let’s see how things are shaping up prior to this announcement.

Factors at Play

The company's shipment volumes are likely to have been lower than usual during the second quarter due to the COVID-19-led trade restrictions. As the impact of the pandemic began to mount during the quarter, the company's markets in the United States and Latin America are anticipated to have been most volatile.

During the first-quarter earnings call, the company announced that it expects potential delays in project sales in the United States for the remainder of the year, primarily led by reduced tax equity financing and increased cost of capital for certain project buyers. Additionally, a sharp depreciation of the local currency in the Latin American market might have delayed purchases and installations of USD priced solar modules, thus affecting sales.

In line with such unfavorable events, the Zacks Consensus Estimate for second-quarter revenues is pegged at $660.6 million, suggesting a plunge of 36.3% from the figure reported in the year-ago quarter.

Expected delays in shipments and disruptions caused in projects due to the ongoing pandemic's impact might have pushed up costs for the company, thereby impacting its quarterly bottom line.

Further, manufacturing closures and lower average selling price (ASP) of modules during the second quarter are likely to have negatively impacted gross margins.

The Zacks Consensus Estimate for second-quarter earnings per share stands at break-even, implying a significant decline from the year-ago period’s reported earnings of 77 cents.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Canadian Solar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings surprise. But that’s not the case here, as you will see below.

Earnings ESP: Canadian Solar has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.

Canadian Solar Inc. Price and EPS Surprise

Canadian Solar Inc. Price and EPS Surprise
Canadian Solar Inc. Price and EPS Surprise

Canadian Solar Inc. price-eps-surprise | Canadian Solar Inc. Quote

Upcoming Solar Releases

ReneSola SOL carries a Zacks Rank #3 and is expected to post second-quarter 2020 results soon.

JinkoSolar Holdings JKS carries a Zacks Rank #3 and is projected to post second-quarter 2020 results soon.

A Recent Solar Release

Enphase Energy, Inc. ENPH reported second-quarter 2020 adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of 14 cents by 21.4%.

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Renesola Ltd. (SOL) : Free Stock Analysis Report
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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
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