Canadian Solar (CSIQ) Q3 Earnings Miss, Revenues Fall Y/Y
Canadian Solar Inc. CSIQ reported third-quarter 2023 earnings of 32 cents per share, lagging the Zacks Consensus Estimate of 91 cents by 64.8%. The bottom line also declined 71.4% from the third-quarter 2022 reported figure.
Total Revenues
This solar cell manufacturer’s total revenues of $1,846.3 million lagged the Zacks Consensus Estimate of $1,994 million by 7.4%. The top line also decreased 4% from the $1,932.5 million reported in the third quarter of 2022.
Canadian Solar Inc. Price, Consensus and EPS Surprise
Canadian Solar Inc. price-consensus-eps-surprise-chart | Canadian Solar Inc. Quote
Operational Update
Solar module shipments in the quarter totaled 8.3 gigawatts (GW), below the guidance range of 8.5-8.7 GW. This includes 82 megawatts (MW) of the company's utility-scale solar power projects. Total module shipments increased 39% on a year-over-year basis.
Canadian Solar’s gross margin was 16.7% in the quarter, below the guided range of 17.5-19.5%. Total operating expenses were $225 million, down 17.9% year over year.
Depreciation and amortization charges were $76 million, up from the $56 million recorded in the year-ago period.
Financial Update
As of Sep 30, 2023, Canadian Solar’s cash and cash equivalents totaled $1,921.1 million, up from $981.4 million on Dec 31, 2022.
Long-term borrowings as of Sep 30, 2023 were $1,071.8 million, up from $813.4 million on Dec 31, 2022.
Guidance
For the fourth quarter of 2023, Canadian Solar expects total module shipments in the range of 7.6-8.1 GW, including approximately 95 MW of module shipments for its projects. Total revenues are expected in the range of $1.6-$1.8 billion. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $2.58 billion, higher than the midpoint of the company’s guided range. The gross margin is expected between 14% and 16%.
Total battery energy storage shipments by CSI Solar in the fourth quarter are expected between 1.4 gigawatt-hours (GWh) and 1.5 GWh.
For 2023, total module shipments are expected between 42 and 47 GW. Battery storage shipments are expected in the range of 6 GWh-6.5 GWh.
Zacks Rank
Canadian Solar currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
First Solar, Inc. FSLR reported third-quarter 2023 earnings of $2.50 per share compared to the prior-year quarter’s loss of 46 cents per share. Earnings beat the Zacks Consensus Estimate of $2.09 per share by 19.6%.
First Solar’s third-quarter net sales were $801.1 million, which lagged the Zacks Consensus Estimate of $901 million by 11.1%. However, the top line improved by 27.4% from the year-ago quarter’s $628.9 million.
Enphase Energy, Inc. ENPH reported third-quarter 2023 adjusted earnings of $1.02 per share, which highlights an 18.4% decline from $1.25 per share reported in the prior-year quarter. The bottom line came in line with the Zacks Consensus Estimate.
Enphase Energy’s third-quarter revenues of $551.1 million missed the Zacks Consensus Estimate of $562 million by 1.9%. The top line also declined 13.2% from the prior-year quarter’s reported figure of $634.7 million.
JinkoSolar Holding Co. Ltd. JKS reported third-quarter 2023 earnings per American Depositary Share (“ADS”) of $2.59, beating the Zacks Consensus Estimate of $1.96 by 32.1%. The company reported earnings per ADS of 59 cents in the year-ago quarter.
In the quarter under review, JinkoSolar’s total revenues of $4,363.2 million surpassed the Zacks Consensus Estimate of $4,224 million by 3.3%. The top line surged 63.1% on a year-over-year basis, driven by an increase in solar module shipments.
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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
