Canadian Solar Q3 Earnings Surpass Estimates, Revenues Fall Y/Y

Canadian Solar, Inc. CSIQ reported third-quarter 2024 loss of 31 cents per share, narrower than the Zacks Consensus Estimate of a loss of 44 cents. The figure also deteriorated from the year-ago quarter’s reported earnings of $32 cents per share.The year-over-year decline can be attributed to the company's poor revenue and gross profit performance in the third quarter of 2024. Find the latest EPS estimates and surprises on Zacks Earnings Calendar. Canadian Solar Inc. Price, Consensus and EPS Surprise Canadian Solar Inc. price-consensus-eps-surprise-chart | Canadian Solar Inc. QuoteRevenuesCanadian Solar reported revenues of $1.51 billion, which lagged the Zacks Consensus Estimate by 10.7%. The top line also declined 18.3% from the year-ago quarter’s figure of $1.85 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.Operational UpdateSolar module shipments in the quarter totaled 8.4 gigawatts (GW), which was lower than the company’s guidance of 9.0-9.5 GW but went up 1% year over year. This includes 31 megawatts (MW) of the company's utility-scale solar power projects.Canadian Solar’s gross margin was 16.4%, which came in slightly above the 14-16% guided range. The gross margin declined 30 basis points year over year due to lower module ASPs.Total operating expenses were $247.1 million, up 9.8% year over year due to higher shipping and handling expenses.Depreciation and amortization charges totaled $134 million, up from $76 million recorded in the year-ago period. The increase was due to Canadian Solar's vertical integration investments over the past two years and incremental capacity in key strategic markets.Financial UpdateAs of Sept. 30, 2024, Canadian Solar’s cash and cash equivalents totaled $2.17 billion, up from $1.94 billion as of Dec. 31, 2023.Long-term borrowings as of Sept. 30, 2024 were $2.24 billion, up from $1.27 billion as of Dec. 31, 2023.GuidanceFor the fourth quarter of 2024, Canadian Solar expects total module shipments to be in the range of 8.0-8.5 GW, including approximately 500 MW of module shipments for its projects.Total revenues are expected to be in the band of $1.5-$1.7 billion. The Zacks Consensus Estimate for fourth-quarter sales is pegged at $2.22 billion, higher than the company’s guided range.The company expects gross margin to be between 16% and 18%.Total battery energy storage shipments by CSI Solar in the fourth quarter are expected to be in the range of 2.0-2.4 gigawatt-hours (GWh).For full-year 2025, the company expects total module shipments to be in the range of 30-35 GW. It anticipates total battery energy storage shipments to be in the band of 11-13 GWh.Zacks RankCanadian Solar currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Other Q3 Solar ReleasesEnphase Energy, Inc. ENPH reported third-quarter adjusted earnings of 65 cents per share, which reflected a 36.3% decline from $1.02 reported in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 78 cents by 16.7%.Enphase Energy’s revenues of $380.9 million missed the consensus estimate of $391 million by 2.6%. The top line also declined 30.9% from the prior-year quarter’s figure of $551.1 million.First Solar, Inc. FSLR reported third-quarter 2024 earnings of $2.91 per share, up 16.4% from the prior-year quarter’s figure of $2.50. However, the bottom line missed the Zacks Consensus Estimate of $3.10 by 6.1%.First Solar’s net sales were $887.7 million, which missed the consensus estimate of $1.07 billion by 17%. The top line, however, improved 10.8% from the year-ago quarter’s $801.1 million.Emeren Group SOL reported an income per American Depositary Share of 9 cents for the third quarter of 2024, which came in line with the Zacks Consensus Estimate. The figure reflects an improvement from the year-ago quarter’s reported loss of 17 cents per share.Emeren’s net revenues of $12.9 million declined 7.2% from $13.9 million reported in the year-ago period.  Moreover, the reported figure missed the Zacks Consensus Estimate of $26 million by 51%.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>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 Emeren Group Ltd. Sponsored ADR (SOL): Free Stock Analysis Report First Solar, Inc. (FSLR): Free Stock Analysis Report Canadian Solar Inc. (CSIQ): Free Stock Analysis Report Enphase Energy, Inc. (ENPH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks