Canadian Solar (CSIQ) Second Quarter Earnings Beat, Year-over-Year Revenue Increase

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Canadian Solar Inc.. CSIQ reported earnings of $1.07 per share in the second quarter of 2022, beating Zacks’ consensus estimate of 70 cents per share by 52.9%. Net income also jumped 494.4% compared to the reported figure for the second quarter of 2021.

Total revenue

The solar cell maker’s total revenue of $2,314.2 million beat Zacks’ consensus estimate of $2,231 million by 3.71%. Revenue improved 62% from $1,429.7 million in Q2 2021, primarily due to higher project sales as well as higher solar shipment volumes and price of average sales, coupled with significant growth in the company’s battery storage solutions business.

CHART

Canadian Solar Inc. Price, Consensus and Surprise EPS

Canadian Solar Inc. price-consensus-eps-surprise-chart | Submission by Canadian Solar Inc.

Operational update

Solar module shipments during the quarter totaled 5.06 gigawatts (GW), which is at the upper end of the guided range of 4.9 to 5.1 GW. This includes 126 megawatts (MW) for the company’s large-scale solar power projects. Total module shipments increased 37% year over year.

Canadian Solar’s gross margin was 16% in the quarter, which is above the indicative range of 14.5-15.5%. Total operating expenses were $255 million, up 61.4% year over year.

Depreciation expense was $63 million, down from $66 million a year ago.

Financial update

As of June 30, 2022, Canadian Solar’s cash and cash equivalents totaled $1,053.6 million, compared to $869.8 million as of December 31, 2021.

Long-term borrowings as of June 30, 2022 were $780.1 million, compared to $523.6 million as of December 31, 2021.

Tips

For the third quarter of 2022, Canadian Solar expects total module shipments to be between 6 and 6.2 GW, including approximately 140 MW of module shipments for its projects. Total revenue is expected to be between $2 billion and $2.1 billion. Zacks’ consensus estimate for second-quarter 2022 sales is pegged at $2.2 billion, slightly higher than the midpoint of the company’s guided range. The gross margin is expected between 15% and 16.5%.

For 2022, the company raised its revenue forecast and now expects it to be between $7.5 and $8 billion, up from $7.0 and $7.5 billion. Zacks’ consensus estimate of $7.5 billion for its 2022 sales is at the high end of the company’s guided range.

Total module shipments are expected to be between 20 and 22 GW, while battery storage shipments are expected to be between 1.8 gigawatt hours (GWh) and 1.9 GWh (CSI Solar). Total project sales are expected to be between 2.1 and 2.6 GW.

Zacks Rank

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

Recent solar publications

Enphase Energy, Inc. ENPH reported second-quarter 2022 adjusted earnings of $1.07 per share, which improved 101.9% from the 53 cents reported in the year-ago quarter.

Enphase Energy’s second-quarter revenue of $530.2 million climbed 67.7% from $316.1 million in the year-ago quarter. For the third quarter of 2022, ENPH forecasts revenue of between $590 million and $630 million.

Prime Solar, Inc.. FSLR reported second-quarter 2022 earnings of 52 cents per share, which beat Zacks’ consensus estimate of 30 cents by 73.3%. However, net income fell from earnings in the prior year quarter by 77 cents per share.

First Solar’s second-quarter sales were $621 million, which beat Zacks’ consensus estimate of $599 million by 3.7%.

Sun Power CorporationSPWR’s share price has risen 4.9% since the release of its results on August 2, 2022. The company reported adjusted earnings of 3 cents per share for the second quarter of 2022. Net income marked a deterioration from year-ago quarter earnings of 7 cents per share.

In the quarter under review, SunPower’s adjusted revenue was $414.1 million. SunPower had cash and cash equivalents of $206.4 million as of July 3, 2022, compared to $123.7 million as of January 3, 2021.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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