Canadian Solar Topples On Disappointing Q1, 2016 Sales Outlook

By | March 10, 2016

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Canadian Solar ’s ( CSIQ ) Q4 growth spurt could be short-lived. The solar panel maker early Thursday guided to Q1 and 2016 sales that missed analysts’ expectations and would be less than year-earlier metrics. In early trading on the stock market today , Canadian Solar stock gapped down as much as 10% before settling down 8%, near 20. Shares now are down 31% for the year even after rising nearly 50% in the latter half of February. For Q4, Canadian Solar reported $1.05 earnings per share ex items on a record $1.12 billion in sales, down 22% and up 17%, respectively, vs. the year-earlier period. Total shipments busted another record at 1.43 gigawatts, up 27%. Sales and EPS topped the consensus of nine analysts polled by Thomson Reuters for $1.04 billion and 76 cents. Last month, Canadian Solar upped its guidance to $1.02 billion to $1.07 billion and 1.35 GW to 1.4 GW. The bottom line improved from 72% and 62% year-over-year declines in Q3 and Q2, respectively. Canadian Solar wrapped up 2015 with $3.47 billion in sales, up 17%, and $2.93 EPS minus items, down 29%. Both measures beat the consensus model for $3.38 billion and $2.62. The company previously guided to $3.35 billion to $3.4 billion in sales. Total shipments reached 4.7 GW, growing 51% and topping the Canadian Solar’s guidance for 4.63 GW to 4.68 GW. But Q1 and 2016 guidance lagged the consensus, indicating Canadian Solar’s Q4 success might not repeat this quarter. IBD’s Energy-Solar industry group, however, was flat in early trading Thursday, and industry leaders First Solar ( FSLR ) and SunPower ( SPWR ) were up a fraction and down a fraction, respectively. For the current quarter, Canadian Solar guided to $645 million to $695 million in sales and 1.085 GW to 1.135 GW in solar module shipments, down 22% and 10%, respectively, at the midpoints of guidance. The sales guide fell well short of the consensus for $803 million. Analysts model a 59% year-over-year decline in EPS ex items at 43 cents. It would be Canadian Solar’s fourth consecutive quarter of declining EPS. And Canadian Solar’s 2016 sales outlook for $2.9 billion to $3.1 billion fell far short of consensus expectations for $3.69 billion and would be down 13.5% at the midpoint of guidance. Total shipments of 5.4 GW to 5.5 GW would be up 16%. Analysts expect EPS ex items to climb 4% to $3.06 in 2016. The company doesn’t give EPS guidance. Image provided by Shutterstock . Scalper1 News

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