Canadian Solar (CSIQ) Misses Q4 EPS by 6c; Issues Light FY15 Revs Outlook

Canadian Solar (NASDAQ: CSIQ) reported Q4 EPS of $1.28, $0.06 worse than the analyst estimate of $1.34. Revenue for the quarter came in at $956.2 million versus the consensus estimate of $953.94 million.

Total solar module shipments were 1,125 MW, with 897 MW recognized in revenue, compared to 770 MW recognized in revenue in the third quarter of 2014, and fourth quarter guidance in the range of 810 MW to 860 MW.

Canadian Solar sees Q1 2015 revenue of $725-775 million, versus the consensus of $733.9 million. For the first quarter of 2015, the Company expects total module shipments to be in the range of approximately 1,000 MW to 1,030MW, including approximately 55 MW of shipments to the Company's utility-scale solar projects that will not be recognized into first quarter 2015 revenue

Canadian Solar sees FY2015 revenue of $2.8-3.0 billion, versus the consensus of $3.42 billion. For the full year 2015, the Company expects total module shipments to be in the range of approximately 4.0 GW to 4.3 GW, including 3,300MW to 3,500 MW of third-party module sales, 235 MW to 275 WW of project and EPC sales, and 460 MW to 490 MW of shipments to projects which will be held on the balance sheet pending the launch of a YieldCo vehicle.

The estimated commercial operation date ("COD") of all of the Company's late-stage projects in Canada, the US, Japan and China is subject to change without notice as a result of delays in permitting and construction, among other risk factors. The acceptance testing and closing process for projects only starts after COD. The length of acceptance testing may be affected by solar radiation levels and other weather conditions. As a result, the transfer of ownership to end customers may not always occur in the same quarter as COD. For the reasons noted, there is a risk that that actual results may differ from current management expectations.

Dr. Shawn Qu, Chairman and Chief Executive Officer of Canadian Solar commented: "We continue to execute well on our long-term vision of building Canadian Solar into a leading global solar energy provider. Once we complete the acquisition of Recurrent, our significantly expanded, globally diverse project pipeline gives us additional strategic options to create lasting value for our shareholders. We have been reviewing various options to structure and potentially list our downstream business, and we are now planning to form a YieldCo vehicle, in order to maximize value creation for our shareholders over the long-term. We expect that a YieldCo vehicle and its subsequent listing would enable us to capture the value inherent in our large pipeline of long-term contracted assets and to recycle capital. We are engaged in the process of analyzing the optimal structure for a YieldCo, including the optimal asset profile. We expect to complete the sale of those Canadian projects for which we have an identified end-buyer. We may, however retain other projects that we have developed for eventual inclusion in the asset base of a YieldCo structure or add additional assets from third parties. We plan to update the market as the process evolves."

The Company plans to host an Investor Day in New York City on May 18, 2015 to discuss its business strategy and outlook.

For earnings history and earnings-related data on Canadian Solar (CSIQ) click here.

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