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Canadian Solar (CSIQ) Q1 Earnings & Sales Top Estimates

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Canadian Solar Inc. (CSIQ - Free Report) reported first-quarter 2018 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 38 cents by 89.5%. The company had reported a loss of 23 cents per share in the year-ago quarter.

Total Revenues

Solar cell manufacturer, Canadian Solar posted total revenues of $1.42 billion in the quarter, which also surpassed the Zacks Consensus Estimate of $1.38 billion by 3%. The top line was also up 110.5% from $0.68 billion reported in first-quarter 2017.

 

Canadian Solar Inc. Price, Consensus and EPS Surprise

 

Canadian Solar Inc. Price, Consensus and EPS Surprise | Canadian Solar Inc. Quote

 

Operational Update

Solar module shipments in the quarter totaled 1,374 megawatts (MW), down 7.2%, from the year-ago level of 1,480 MW. The figure however exceeded management’s guidance range of 1.30-1.35 gigawatt (GW).

Gross profit was $143.9 million, up 57.4%, from the year-ago level of $91.4 million. Gross margin was 10.1% in the quarter compared with 13.5% in the prior-year quarter.

Total operating expenses were $88.4 million, up 45.6% year over year. Selling expenses totaled $39.9 million, down 6.6% year over year. General and administrative expenses were $69.7 million, up 10.8% year over year. Research and development expenses were $8.6 million compared with $3.2 million a year ago.

Interest expenses were $65.7 million, down from $93.7 million recorded a year ago.

Financial Update

As of Mar 31, 2018, cash and cash equivalents were $567.4 million, up from $561.7 million as of Dec 31, 2017.

Long-term debt as of Mar 31, 2018, was $328.1 million, down from $404.3 million as of Dec 31, 2017.

Business Developments

During the reported quarter, Canadian Solar announced that its wholly-owned subsidiary, Recurrent Energy, had completed the sale of its interests in three solar power plants — Astoria, Astoria 2 and Barren Ridge projects — totaling 235 MWac/309 MWp to KEPCO, South Korea's largest electric utility. The company also announced that it successfully started commercial operation of a 6 MWp solar power plant in Keetmanshoop, Namibia.

Moreover, Canadian Solar acquired a 97.6 MWp solar photovoltaic project in Cafayate, Salta Province, Argentina.

Guidance

For second-quarter 2018, Canadian Solar expects shipments in the range of 1.50-1.60 GW. Total revenues are projected in the range of $690-$730 million along with gross margin in the 20-22% range.

Zacks Rank

Canadian Solar 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 (FSLR - Free Report) reported first-quarter 2018 earnings of 78 cents per share, better than the Zacks Consensus Estimate of a loss of 5 cents, by a huge margin.

SunPower incurred first-quarter 2018 adjusted loss of 20 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 34 cents.

Enphase Energy (ENPH - Free Report) reported first-quarter 2018 loss of a penny, was narrower than the Zacks Consensus Estimate of a loss of 3 cents.

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