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Canadian Solar Q1 Earnings Top Estimates, Revenues Fall Y/Y
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Canadian Solar Inc. (CSIQ - Free Report) reported adjusted first-quarter 2019 loss of 29 cents per share, narrower than the Zacks Consensus Estimates of a loss of 44 cents. However, the company’s adjusted first-quarter 2018 earnings were 72 cents per share.
Total Revenues
In the reported quarter, total revenues of this solar cell manufacturer came in at $484.7 million, beating the Zacks Consensus Estimate of $471 million by 2.9%. However, the top line declined 66% from $1,425 million reported in first-quarter 2018.
Operational Update
Solar module shipments in the quarter totaled 1,575 megawatts (MW), down 19.3% from fourth-quarter’s shipment of 1,951 MW. However, the figure exceeded management’s first-quarter 2019 guidance of 1.30-1.40 gigawatt (GW).
Gross profit was $107.4 million, down 25.4% from the year-ago quarter’s level of $143.9 million. Gross margin was 22.2% in the quarter (excluding the CVD reversal benefits). Including the benefits, gross margin was 30.1% compared with 10.1% in the first quarter of 2018, he year-over-year increase was driven by a lower blended module manufacturing cost compared to its previous forecast.
Total operating expenses amounted to $100.8 million, up 53.4% year over year. Selling expenses totaled $37.9 million, down 10.4% year over year. General and administrative expenses were $51.4 million, up 5.3% year over year. Research and development expenses were $13.2 million compared with $9.5 million in the year-ago period.
Interest expenses were $21.7 million, down from $29.6 million recorded in the year-ago period.
Canadian Solar Inc. Price, Consensus and EPS Surprise
As of Mar 31, 2019, cash and cash equivalents were $370.2 million, down from $444.3 million as of Dec 31, 2018.
Long-term debt as of Mar 31, 2019, was $433.5 million, up from $393.6 million as of Dec 31, 2018.
Q2 2019 Guidance
For second-quarter 2019, Canadian Solar expects shipments in the range of 1.95-2.05 GW. This new guidance includes approximately 50 MW of shipments to its utility-scale solar power projects that may not be recognized as revenues in the second quarter 2019.
Total revenues are projected to be $970-$1,010 million, while gross margin is expected to be 13-15%, reflecting the inclusion of the Mustang project sale. Excluding the Mustang project sale, gross margin for the second quarter is expected to be between 16% and 18%.
First Solar Inc. (FSLR - Free Report) incurred a loss of 64 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents.
Sunrun Inc. (RUN - Free Report) incurred a loss of 12 cents per share in first-quarter 2019 against the Zacks Consensus Estimate of earnings of 32 cents.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2019 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by 3.2%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Canadian Solar Q1 Earnings Top Estimates, Revenues Fall Y/Y
Canadian Solar Inc. (CSIQ - Free Report) reported adjusted first-quarter 2019 loss of 29 cents per share, narrower than the Zacks Consensus Estimates of a loss of 44 cents. However, the company’s adjusted first-quarter 2018 earnings were 72 cents per share.
Total Revenues
In the reported quarter, total revenues of this solar cell manufacturer came in at $484.7 million, beating the Zacks Consensus Estimate of $471 million by 2.9%. However, the top line declined 66% from $1,425 million reported in first-quarter 2018.
Operational Update
Solar module shipments in the quarter totaled 1,575 megawatts (MW), down 19.3% from fourth-quarter’s shipment of 1,951 MW. However, the figure exceeded management’s first-quarter 2019 guidance of 1.30-1.40 gigawatt (GW).
Gross profit was $107.4 million, down 25.4% from the year-ago quarter’s level of $143.9 million. Gross margin was 22.2% in the quarter (excluding the CVD reversal benefits). Including the benefits, gross margin was 30.1% compared with 10.1% in the first quarter of 2018, he year-over-year increase was driven by a lower blended module manufacturing cost compared to its previous forecast.
Total operating expenses amounted to $100.8 million, up 53.4% year over year. Selling expenses totaled $37.9 million, down 10.4% year over year. General and administrative expenses were $51.4 million, up 5.3% year over year. Research and development expenses were $13.2 million compared with $9.5 million in the year-ago period.
Interest expenses were $21.7 million, down from $29.6 million recorded in the year-ago period.
Canadian Solar Inc. Price, Consensus and EPS Surprise
Canadian Solar Inc. price-consensus-eps-surprise-chart | Canadian Solar Inc. Quote
Financial Update
As of Mar 31, 2019, cash and cash equivalents were $370.2 million, down from $444.3 million as of Dec 31, 2018.
Long-term debt as of Mar 31, 2019, was $433.5 million, up from $393.6 million as of Dec 31, 2018.
Q2 2019 Guidance
For second-quarter 2019, Canadian Solar expects shipments in the range of 1.95-2.05 GW. This new guidance includes approximately 50 MW of
shipments to its utility-scale solar power projects that may not be recognized as revenues in the second quarter 2019.
Total revenues are projected to be $970-$1,010 million, while gross margin is expected to be 13-15%, reflecting the inclusion of the Mustang project sale. Excluding the Mustang project sale, gross margin for the second quarter is expected to be between 16% and 18%.
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.
Other Solar Releases
First Solar Inc. (FSLR - Free Report) incurred a loss of 64 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents.
Sunrun Inc. (RUN - Free Report) incurred a loss of 12 cents per share in first-quarter 2019 against the Zacks Consensus Estimate of earnings of 32 cents.
SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2019 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by 3.2%.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>