Post-Earnings Highlights - Canadian Solar

LONDON, December 4, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings highlights on Canadian Solar Inc. (NASDAQ: CSIQ). On November 12, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Canadian Solar Inc. (Canadian Solar). During the reported quarter, the company's net revenue rose 86.3% on a Y-o-Y basis, and net income attributable to Canadian Solar increased $1.19 per diluted share from Q3 FY13. Dr. Shawn Qu, Chairman and CEO of Canadian Solar, stated that the company's Q3 FY14 results have exceeded its expectations on all financial and operating metrics, led by the strength of its utility-scale solar energy business, combined with a robust performance from module business, which continues to benefit from its Tier-1 brand, global scale, stable average selling price and broad-based growth in demand. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

Canadian Solar's net revenue for Q3 FY14 increased to $914.38 million from $490.90 million in Q3 FY13. The company's reported revenue also surpassed Bloomberg analysts' forecasts of $803.33 million. During Q3 FY14 geography wise, the company's sales to the Americas represented 71.7% of net revenue, while sales to Asia and other markets represented 20.9% of net revenue, and sales to Europe represented 7.4% of net revenue compared to 46.9%, 43.6% and 9.5%, respectively, in Q3 FY13. The free research on CSIQ can be downloaded as in PDF format at:

www.Investor-Edge.com/CSIQFreeReport

Mr. Qu informed that Canadian Solar's team was able to close and recognize the sale of five utility-scale solar power projects in Canada, exceeding its target of four projects. He added that Canadian Solar is pleased with its solid execution and expects the company's Canadian project pipeline will continue to deliver strong profit in 2015.

The company's gross profit for Q3 FY14 rose to $209.29 million from $100.21 million in Q3 FY13. The Y-o-Y increase in gross profit was primarily driven by higher revenue contribution from its total solutions business, as well as rise in module shipments and lower module manufacturing cost. In Q3 FY14, net income attributable to Canadian Solar increased to $104.20 million, or $1.75 per diluted share, from $27.69 million, or $0.56 per diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report Q3 FY14 net income of $68.25 million, or $1.13 per share. Sign up and read the free analyst's notes on CSIQ at:

www.Investor-Edge.com/CSIQ-04122014

Michael G. Potter, Senior Vice President and CFO of Canadian Solar, stated that this was an excellent quarter for Canadian Solar as its revenue, shipments, and net income all set quarterly records for the company. He added that the five Canadian project sales, combined with better than expected module ASP (average selling price), and the fact that the company is running near full capacity, enabled it to achieve gross margin of 22.9% in Q3 FY14, compared to 19.0% in Q2 FY14. He stated that the gross margin for the quarter was well above its guided range of 19% to 21%. On a separate note, Mr. Potter said that the company is pleased that its hedging strategy significantly offset the immediate effect of the strengthening U.S. dollar in Q3 FY14.

For Q4 FY14, Canadian Solar expects module shipments in the range of approximately 810 MW to 860 MW. Total revenue for Q4 FY14 is expected in the range of $925 million to $975 million, while gross margin is expected between 17% and 19%. The company informed that its gross margin guidance factors in the impact of the U.S. trade case, the appreciation of the U.S. dollar, and the mix of project sales expected to close in Canada.

For full-year FY14, the company has raised its annual module shipment guidance in the range of 2.73 GW to 2.78 GW, compared to previous range of 2.5 GW to 2.7 GW. Further, Canadian Solar expects its full-year FY14 revenues to range between approximately $2.93 billion to $2.98 billion, up from previous range of $2.7 billion to $2.9 billion. Visit Investor-Edge and access the latest research on CSIQ at:

www.Investor-Edge.com/CSIQEarningsCoverage

Stock Performance  

On the day of the earnings release, November 12, 2014, Canadian Solar's stock ended the session at $28.08, down 10.77%. The stock has witnessed mostly a downward movement since then. On the last close, Wednesday, December 03, 2014, the stock edged 0.04% lower, finishing at $23.20. The company's shares vacillated between $23.19 and $23.90 during the session. A total of 2.57 million shares were traded, which was below its three months average volume of 4.03 million shares. Over the previous three trading sessions and over the last one month, the company's shares have lost 4.49% and 26.63%, respectively. Further, the stock has declined 22.20% since the beginning of 2014. Shares in Canadian Solar closed below their 50-day and 200-day moving averages of $30.09 and $30.57, respectively. Furthermore, the stock traded at a PE ratio of 8.28 and has a Relative Strength Index (RSI) of 34.00.

Sneak Peek to Corporate Insider Trading 

In the last one month Canadian Solar has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on CSIQ is available at:

www.Investor-Edge.com/CSIQInsiderTrading

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