Could Canadian Solar’s Q4, 2015 Sales Signal Return To Growth?

By | March 9, 2016

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Canadian Solar’s expected record-busting fourth-quarter and full-year 2015 sales, to be reported before the open Thursday, could mark a return to growth, as the company reaccelerates from a pair of quarters with falling year-over-year revenue. For Q4, Canadian Solar ( CSIQ ) is expected to break the $1 billion mark, a first, with $1.04 billion in sales, up 9% vs. the year-earlier quarter, according to the consensus estimate of nine analysts polled by Thomson Reuters. Earnings per share ex items of 76 cents would be down 41% vs. the year-earlier quarter. But that would mark an improvement from 72% and 62% year-over-year declines in Q3 and Q2, respectively. Last month, Canadian Solar upped its Q4 and 2015 sales guidance. For Q4, Canadian Solar sees $1.02 billion to $1.07 billion in sales. The company also expects total solar module shipments of 1.35 to 1.4 gigawatts, which would be up 22% at the midpoint. For 2015, analysts model $2.62 EPS minus items on $3.38 billion in sales, down 57% and up 14%, respectively. Canadian Solar guided to $3.35 billion to $3.4 billion in sales but doesn’t give EPS guidance. Solar module shipments of 4.63 GW to 4.68 GW, per Canadian Solar’s guidance, would be up 50% vs. the year earlier. In last month’s guidance release, Canadian Solar CEO Shawn Qu credited the strong expectations to “continued health and robust demand in the global solar market.” “We expect growth of global solar demand to continue, based on the compelling environmental and cost advantages solar energy offers and its single-digit penetration rate of the worldwide energy market,” he said in a statement. Canadian Solar is based in Ontario, Canada, but a large share of its manufacturing is based in China, where the solar market has been robust. China leads the world in terms of installed solar capacity, with 43.2 GW at the end of 2015 — 18.3 GW of which was installed in that year alone — according to Wind Power Engineering & Development. Comparatively, the U.S. installed 7.3 GW in 2015 , reaching a total 27.4 GW in installed capacity. Canadian Solar stock rose 1.9% on Wednesday. Canadian Solar has a low IBD Composite Rating of 28 out of a best-possible 99, trailing leaders SolarEdge Technologies ( SEDG ) and JA Solar ( JASO ), with CRs of 97 and 94, respectively. Scalper1 News

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