Advertisement
Canada markets closed

  • S&P/TSX

    22,308.93
    -66.90 (-0.30%)
     

  • S&P 500

    5,222.68
    +8.60 (+0.16%)
     

  • DOW

    39,512.84
    +125.08 (+0.32%)
     

  • CAD/USD

    0.7317
    +0.0006 (+0.08%)
     

  • CRUDE OIL

    78.20
    -1.06 (-1.34%)
     

  • Bitcoin CAD

    83,143.67
    -3,013.76 (-3.50%)
     

  • CMC Crypto 200

    1,256.69
    -101.32 (-7.46%)
     

  • GOLD FUTURES

    2,366.90
    +26.60 (+1.14%)
     

  • RUSSELL 2000

    2,059.78
    -13.85 (-0.67%)
     

  • 10-Yr Bond

    4.5040
    +0.0550 (+1.24%)
     

  • NASDAQ

    16,340.87
    -5.40 (-0.03%)
     

  • VOLATILITY

    12.55
    -0.14 (-1.10%)
     

  • FTSE

    8,433.76
    +52.41 (+0.63%)
     

  • NIKKEI 225

    38,229.11
    +155.13 (+0.41%)
     

  • CAD/EUR

    0.6789
    +0.0011 (+0.16%)
     
MARKETS LIVE BLOG:

STOCKS CLIMB AS DOW POSTS 8TH STRAIGHT WIN

Fed's Michelle Bowman echoes higher-for-longer mantra for interest rates

Canadian Solar (CSIQ) Q3 Earnings Beat, Revenues Rise Y/Y

Zacks Equity Research
·4 min read

Canadian Solar Inc. CSIQ reported third-quarter adjusted earnings of 42 cents per share, which surpassed the Zacks Consensus Estimate of 18 cents by 133.3%.

Barring one-time items, Canadian Solar posted GAAP earnings of 52 cents compared with 15 cents generated in the prior-year quarter.

Total Revenues

This solar cell manufacturer’s total revenues of $1,229.5 million missed the Zacks Consensus Estimate of $1,322 million by 7%. The top line however improved a solid 34.5% from $914.4 million reported in third-quarter 2020.

Canadian Solar Inc. Price, Consensus and EPS Surprise

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 3.87 gigawatts (GW), which came in a bit below the mid-point of the guided range of 3.8-4.0 GW. This includes 173 megawatts (MWs) for the company's utility-scale solar power projects. Total module shipments increased 22% on a year-over-year basis.

ADVERTISEMENT

Canadian Solar’s gross margin was 18.6% in the quarter, above the guided range of 14-16%.

Total operating expenses were $175.5 million, up 47.1% year over year. The increase was due to higher selling and distribution expenses as well as general and administrative expenses.

Interest expenses were $13.2 million, down from $17.9 million recorded in the year-ago period.

Financial Update

As of Sep 30, 2021, Canadian Solar’s cash and cash equivalents totaled $867.9 million, down from $1,178.8 million on Dec 31, 2020.

Long-term borrowings as of Sep 30, 2021 were $579.5 million, up from $446.1 million on Dec 31, 2020.

Guidance

For the fourth quarter of 2021, Canadian Solar expects total module shipments of 3.7-3.9 GW including approximately 250 MW of module shipments to its own projects. Total revenues are expected in the range of $1.5-$1.6 billion. The gross margin is expected between 14% and 16%.

The Zacks Consensus Estimate for fourth-quarter revenues, pegged at $1.95 billion, lies above the company guidance.

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

First Solar FSLR reported third-quarter 2021 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 33.3%. Its third-quarter sales were $584 million, which lagged the Zacks Consensus Estimate of $699 million by 16.5%.

First Solar still expects earnings to be $4.00-$4.60 per share on sales of $2.88-3.10 billion in 2021. First Solar carries a Zacks Rank #4 (Sell), at present. The stock has gained 26.2% in the past year.

Enphase Energy ENPH reported third-quarter 2021 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%. Enphase Energy’s third-quarter revenues of $351.5 million beat the Zacks Consensus Estimate of $344.9 million by 1.9%.

For fourth-quarter 2021, Enphase Energy expects revenues of $390-$410 million. The company carries a Zacks Rank #3 at present. The stock has gained 103.7% in the past year.

SolarEdge Technologies SEDG reported third-quarter adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.38 by 5.1%. SolarEdge’s revenues of $526.4 million in the third quarter missed the Zacks Consensus Estimate of $530 million by 0.6%.

For fourth-quarter 2021, SolarEdge expects revenues to be $530-$560 million. The company carries a Zacks Rank #3 at present. The stock has gained 52.6% in the past year.


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

First Solar, Inc. (FSLR) : Free Stock Analysis Report

Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report

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

SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research