Canadian Solar (CSIQ) to Report Q3 Earnings: What's in Store?
Canadian Solar Inc. CSIQ is slated to report third-quarter 2023 results on Nov 14, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 57.24%. The company has a trailing four-quarter average earnings surprise of 107.38%.
Factors to Note
Solid module shipment, backed by pent-up demand from customers across the world, is likely to have boosted Canadian Solar’s third-quarter top-line performance. Notable project sales that result in significant project monetization can also be expected to have contributed favorably to CSIQ’s revenues in the soon-to-be-reported quarter.
Canadian Solar Inc. Price and EPS Surprise
Canadian Solar Inc. price-eps-surprise | Canadian Solar Inc. Quote
However, the sluggish demand scenario in the U.S. solar market lately (owing to higher interest rate environment) might have had some impact on the company’s revenues from the United States during the third quarter.
The Zacks Consensus Estimate for revenues is pegged at $1.99 billion, indicating a 3.2% increase from the year-ago quarter’s level.
Declining input costs, owing to lowering polysilicon prices, along with reducing logistic costs for the company, particularly in China, are likely to have favorably contributed to CSIQ’s third-quarter earnings.
However, lower average selling price for solar module is expected to have reduced Canadian Solar’s quarterly gross margin, thereby impacting its overall earnings in the soon-to-be-reported quarter. Also, share-based compensation expense in relation to the CSI Solar IPO is likely to have weighed on CSIQ’s bottom-line performance.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 91 cents per share, indicating an 18.8% decline from the year-ago quarter’s figure.
What the Zacks Model Unveils
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 chances of an earnings beat, which is not the case here.
Earnings ESP: CSIQ’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Canadian Solar currently carries a Zacks Rank #4 (Sell).
A Stock to Consider
Here is a company from the same sector you may want to consider, as it has the right combination of elements to post an earnings beat this reporting cycle.
FREYR Battery FREY currently has an Earnings ESP of +26.58% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FREY’s third-quarter sales is pegged at $0.09 million. The consensus estimate for third-quarter earnings is pinned at a loss of 40 cents per share. FREY delivered a trailing four-quarter average earnings surprise of 25.84%.
Recent Solar Releases
Enphase Energy, Inc. ENPH reported third-quarter 2023 adjusted earnings of $1.02 per share, indicating an 18.4% decline from $1.25 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.’s JKS reported third-quarter 2023 earnings per American Depositary Share (ADS) of $2.59, which beat 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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JinkoSolar Holding Company Limited (JKS) : Free Stock Analysis Report
Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
FREYR Battery (FREY) : Free Stock Analysis Report
