Canadian Solar (CSIQ) Q2 Earnings Top, '19 Shipment View Up
Zacks Investment Research | Aug 19, 2019 08:15AM ET
Canadian Solar Inc. (NASDAQ:CSIQ) reported adjusted second-quarter 2019 earnings of 77 cents per share, which surpassed the Zacks Consensus Estimates of 23 cents by a massive 235%. In the year-ago quarter, the company had incurred adjusted loss of 6 cents per share.
GAAP earnings came in at $1.04 per share in the quarter under review compared with 26 cents in second-quarter 2018.
Total Revenues
This solar cell manufacturer’s total revenues of $1,036.3 million outpaced the Zacks Consensus Estimate of $1,006 million by 4.6%. The top line also improved 59.3% from $650.6 million reported in second-quarter 2018.
The year-over-year improvement can be attributed to better-than-expected module shipments in second-quarter 2019.
Operational Update
Solar module shipments in the quarter totaled 2,143 megawatts (MW), up 36.1% from first-quarter shipment of 1,575 MW. Moreover, the figure exceeded management’s second-quarter 2019 guidance of 1.95-2.05 gigawatt (GW).
Gross profit amounted to $182.6 million, up 14.6% from the year-ago quarter’s level of $159.4 million. Gross margin was 15.5% in the quarter (excluding the AD and CVD benefits). Including the benefits, gross margin was 17.6% compared with 24.5% in the second quarter of 2018.
Total operating expenses were $121.9 million, up 25.6% year over year. However, selling expenses of $45.4 million declined 12.7% year over year on account of increase in shipping and handling costs, and project transaction fees associated with the higher quarterly revenue level.
General and administrative expenses summed $65.7million, up 16.5% year over year. Research and development expenses were $12.1 million compared with $9.1 million in the year-ago period.
Interest expenses were $20.7 million, down from $26.6 million recorded in the year-ago period.
Financial Update
As of Jun 30, 2019, cash and cash equivalents totaled$438.5 million, up from $370.2 million as of Mar 31, 2019.
Long-term debt as of Jun 30, 2019, was $462.9 million, up from $433.5 million as of Mar 31, 2019.
Guidance
For third-quarter 2019, Canadian Solar expects shipments in the range of 2.2-2.3 GW. This guidance includes approximately 160 MW of shipments to its utility-scale solar power projects that may not be recognized as revenues in the third quarter.
Total revenues are projected to be $780-$810 million, while gross margin is expected to be 24-26%. This reflects the positive impact of planned higher gross margin project sales primarily in Japan and the United States.
For 2019, Canadian Solar raised its guidance for total module shipments to the range of approximately 8.4-8.5 GW from 7.4-7.8 GW projected earlier.
Zacks Rank
Canadian Solar sports a Zacks Rank #1 (Strong Buy). You can see Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.