U.S. Markets closed

What's in Store for Canadian Solar (CSIQ) in Q3 Earnings?

Zacks Equity Research

Canadian Solar Inc. CSIQ is expected to report third-quarter 2019 results on Nov 12, before market open.

In the last reported quarter, the company delivered a massive positive earnings surprise of 234.78%. The bottom line also outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 115.66%.

Let's see how things have shaped up prior to this announcement.

Factors at Play

Higher volume of solar module sales is expected to have been a major growth driver of Canadian Solar’s third-quarter revenues. As the company’s fundamental business remains strong owing to healthy demand and stable average selling price (ASP), we expect the upcoming quarterly results to reflect strong solar module shipments.

Moreover, during the quarter, Canadian Solar completed the sale of a 266 megawatt-peak solar project to Duke Energy Renewables. The company is likely to have completed the sale of its Brazilian projects. The company’s third-quarter results are likely to reflect proceeds from such project divestitures.

For third-quarter revenues, the Zacks Consensus Estimate is pegged at $797.9 million, suggesting a solid improvement of 3.9% from the figure reported in the year-ago quarter.

Canadian Solar Inc. Price and EPS Surprise

Canadian Solar Inc. Price and EPS Surprise

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

Meanwhile, Canadian Solar has been witnessing a notable increase in operating expenses over the last few quarters. The company's income tax expenses have also increased over the last few quarters.

The Zacks Consensus Estimate for third-quarter earnings stands at 88 cents, implying an 8.3% decline from the previous year's third-quarter earnings.

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 a positive 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 3. You can see the complete list of today's Zacks #1 Rank stocks here.

Recent Solar Releases

Enphase Energy ENPH reported third-quarter 2019 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate by 20%. The bottom line also improved a massive 650% from 4 cents reported in the prior-year quarter.

SunPower SPWR reported adjusted earnings of 22 cents per share in third-quarter 2019 in contrast to the Zacks Consensus Estimate of a loss of a penny. The company had incurred a loss of 29 cents per share in the year-ago quarter.

First Solar FSLR reported third-quarter 2019 adjusted earnings of 29 cents per share, missing the Zacks Consensus Estimate by 72.6%. The figure, however, marked an improvement from prior-year quarter’s loss per share of 18 cents.

Wall Street’s Next Amazon

Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.

Click for details >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
SunPower Corporation (SPWR) : Free Stock Analysis Report
First Solar, Inc. (FSLR) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research