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

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Canadian Solar, Inc. (CSIQ - Free Report) reported second-quarter 2024 earnings of 2 cents per share, which surpassed the Zacks Consensus Estimate of a loss of 1 cent. However, the bottom line declined 99.2% from the second-quarter 2023 reported figure of $2.39 per share.

Revenues

Canadian Solar reported revenues of $1.63 billion in the second quarter, which lagged the Zacks Consensus Estimate by 0.4%. The top line also declined 30.8% from the year-ago quarter’s figure of $2.36 billion.

This year-over-year decrease was primarily due to a decline in the average selling price (ASP) for CSIQ’s modules and lower project sales, which was marginally offset by higher battery energy storage solutions sales.

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 8.2 gigawatts (GW), which came above the company’s earlier announced guidance range of 7.5-8 GW. This includes 135 megawatts (MW) of the company's utility-scale solar power projects.

Canadian Solar’s gross margin was 17.2% in the quarter, in line with the 16%-18% guidance range. The gross margin declined by 140 basis points year over year, driven by lower margin contributions from solar power and battery energy storage asset sales and lower module ASPs.

Total operating expenses were $234.4 million, up 8.3% year over year.

Depreciation and amortization charges were $122 million, up from the $73 million recorded in the year-ago period. The increase was due to the company's continued investments in vertical integration and incremental capacity expansion.

Financial Update

As of Jun 30, 2024, Canadian Solar’s cash and cash equivalents totaled $1.62 billion, down from $1.94 billion on Dec 31, 2023.

Long-term borrowings as of Jun 30, 2024 were $1.62 billion, up from $1.27 billion on Dec 31, 2023.

Guidance

For the third quarter of 2024, Canadian Solar expects total module shipments in the range of 9.0-9.5 GW, including approximately 100 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 third-quarter sales is pegged at $1.64 billion, which is lower than the midpoint of the company’s guided range.

The company expects gross margin to be between 14% and 16%.

Total battery energy storage shipments by CSI Solar in the third quarter are expected between 1.4 gigawatt-hours (GWh) and 1.7 GWh.

For full-year 2024, the company expects total module shipments in the range of 32 GW-36 GW and total revenues in the range of $6.5 billion-$7.5 billion.

Zacks Rank

Canadian Solar currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

First Solar, Inc. (FSLR - Free Report) reported second-quarter 2024 earnings of $3.25 per share, up a solid 104.4% from the prior-year quarter’s reported earnings of $1.59 per share. The bottom line also beat the Zacks Consensus Estimate of $2.67 by 21.7%.

First Solar’s second-quarter net sales were $1.01 billion, which surpassed the Zacks Consensus Estimate of $0.95 billion by 6.8%. The top line also improved 24.6% from the year-ago quarter’s $0.81 billion.

Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2024 adjusted earnings of 43 cents per share, highlighting a 70.7% decline from $1.47 reported in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 49 cents per share by 12.2%.

Enphase Energy’s second-quarter revenues of $303.5 million missed the Zacks Consensus Estimate of $314 million by 1.8%. The top line also declined 57.3% from the prior-year quarter’s reported figure of $711.1 million.

Nextracker Inc. (NXT - Free Report) reported first-quarter fiscal 2025 adjusted earnings of 93 cents per share, highlighting a 93.8% rise from 48 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 66 cents per share by 40.9%.

NXT’s first-quarter revenues of $719.9 million beat the Zacks Consensus Estimate of $618 million by 16.5%. The top line also increased 50.1% from the prior-year quarter’s reported figure of $479.5 million.

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