Canadian Solar Inc. (NASDAQ:) reported adjusted third-quarter 2019 earnings of 66 cents per share, which missed the Zacks Consensus Estimate of 88 cents by 25%. The figure also declined 31.3% from the year-ago level.
GAAP earnings came in at 96 cents per share in the quarter under review compared with $1.04 in third-quarter 2018.
Total Revenues
This solar cell manufacturer’s total revenues of $759.9 million lagged the Zacks Consensus Estimate of $798 million by 4.8%. The top line also declined 1.1% from $768 million reported in third-quarter 2018.
The year-over-year decline was due lower revenues from the sale of solar power plants.
Canadian Solar Inc. Price, Consensus and EPS Surprise
Canadian Solar Inc. price-consensus-eps-surprise-chart | Canadian Solar Inc. Quote
Operational Update
Solar module shipments in the quarter totaled 2,387 megawatts (MW), which exceeded management’s guided range of 2.2-2.3 gigawatt (GW). Solar module shipments recognized in third-quarter revenues totaled 2,156 MW, improving 41.7% from 1,521 MW in the prior-year period.
Gross margin was 23% in the quarter (excluding AD and CVD benefits) compared with 25% in third-quarter 2018.
Total operating expenses were $118.8 million, up 13.7% year over year. The increase in operating costs in the reported quarter was due to higher selling expenses, general and administrative expenses, and research and development expenses.
Interest expenses were $19.2 million, down 7.2% from $20.7 million recorded in the year-ago period.
Financial Update
As of Sep 30, 2019, cash and cash equivalents totaled $526.2 million, up from $444.3 million on Dec 31, 2018.
Long-term borrowings as of Sep 30, 2019 were $525.9 million, up from $393.6 million on Dec 31, 2018.
Guidance
For fourth-quarter 2019, Canadian Solar expects shipments in the range of 2.3-2.4 GW. This guidance includes approximately 190 MW of shipments to its utility-scale solar power projects that may not be recognized as revenues in the fourth quarter. Total revenues are projected within $850-$880 million, while gross margin is expected in the band of 19-21%.
For 2019, Canadian Solar reiterated its guidance for total module shipments in the range of 8.4-8.5 GW. Total revenues for the year are expected in the range of $3.13-$3.16 billion.
Zacks Rank
Canadian Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Releases
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