Canadian Solar (CSIQ) Q2 Earnings Beat, Revenues Rise Y/Y

Canadian Solar Inc. CSIQ reported second-quarter earnings of 18 cents per share. The Zacks Consensus Estimate was of a loss per share of 31 cents. The bottom line, however, declined from the prior-year quarter’s figure.

Total Revenues

This solar cell manufacturer’s total revenues of $1,429.7 million beat the Zacks Consensus Estimate of $1,426 million by 0.3%. The top line also improved a solid 105% from $1,089.3 million reported in second-quarter 2020.

Canadian Solar Inc. Price, Consensus and EPS Surprise

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 3.7 gigawatts (GW), matching the higher end of the guided range of 3.5-3.7 GW. This includes 167 megawatt (MW) for the company's utility-scale solar power projects. Total module shipments increased 26% on a year-over-year basis.

Gross margin was 12.9% in the quarter, above the guided range of 9.5-10.5%.

Total operating expenses were $158.4 million, up 55.7% year over year. The increase was due to higher research and development expenses, general and administrative expenses, and selling and distribution expenses.

Interest expenses were $14.8 million, down from $17 million recorded in the year-ago period.

Financial Update

As of Jun 30, 2021, cash and cash equivalents totaled $814.2 million, down from $1,178.8 million on Dec 31, 2020.

Long-term borrowings as of Jun 30, 2021 were $530.8 million, up from $446.1 million on Dec 31, 2020.

Guidance

For the third quarter of 2021, the company expects total module shipments of 3.8-4 GW including approximately 275 MW of module shipments to its own projects. Total revenues are expected in the range of $1.2-$1.4 billion. Gross margin is expected between 14% and 16%.

For 2021, Canadian Solar reduced its total module shipments to 16-17 GW from 18-20 GW while revenues are reaffirmed in the band of $5.6-$6.0 billion. The Zacks Consensus Estimate for the same is pegged at $5.81 billion, higher than $5.8 billion, the midpoint of the guided range.

Zacks Rank

Canadian Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

Enphase Energy ENPH reported second-quarter 2021 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 42 cents by 26.2%.

SunPower Corp. SPWR reported second-quarter 2021 adjusted earnings of 6 cents per share, which surpassed the Zacks Consensus Estimate of 3 cents by 100%.

First Solar Inc. FSLR reported adjusted earnings of 77 cents per share, which outpaced the Zacks Consensus Estimate of 60 cents for the June quarter.

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