Canadian Solar (CSIQ) Tops Q1 EPS by 98c, Offers Q2 Guidance

Canadian Solar (NASDAQ: CSIQ) reported Q1 EPS of $1.84, $0.98 better than the analyst estimate of $0.86. Revenue for the quarter came in at $826 million versus the consensus estimate of $792.65 million.

GUIDANCE:

Canadian Solar sees Q2 2020 revenue of $630-680 million, versus the consensus of $779.7 million.

The Company's business outlook is based on management's current views and estimates given existing market conditions, order book, production capacity, anticipated timing of project sales, and the global economic environment. This outlook is subject to uncertainty with respect to, among other things, final customer demand and project construction and sale schedules, and the ongoing global impact of COVID-19. Management's views and estimates are subject to change without notice.

For the second quarter of 2020, the Company expects total module shipments to be in the range of 2.5 GW to 2.7 GW, including approximately 200 MW of module shipments to the Company's own projects that may not be immediately recognized as revenues. Total revenues are expected to be in the range of $630 million to $680 million, with gross margin expected to be between 18.5% and 20.5%.

The Company continues to expect total solar module shipments for the year of 2020 to be in the rage of 10 GW to 12 GW, as previously guided. In light of the uncertainty caused by COVID-19 with respect to business conditions in the second half of 2020, however, the Company is withdrawing its 2020 annual financial guidance.

Dr. Shawn Qu, Chairman and Chief Executive Officer, commented: "While demand has remained relatively strong into the second quarter, there are uncertainties in the global COVID-19 environment relating to the timing of certain project sales which had been scheduled for this year. In addition, we have seen declines in module and input material ASPs, with the timing and scale of these declines creating uncertainty with respect to profit margins. We expect these dynamics to be temporary in nature, however, given the attractiveness of solar investments worldwide. We also note the accelerating development of the solar plus storage market, which we expect will become a more meaningful contributor to our future revenue growth. Over the longer term, we remain well-positioned for continued success as solar power achieves grid-parity in an increasing number of markets. We will continue to benefit from our diversified revenue and manufacturing base, healthy balance sheet and liquidity, and strong relationships with customers, suppliers and financing partners."

Dr. Qu added, "I am pleased to announce that Yan Zhuang has been appointed as President and Chief Operating Officer of Canadian Solar, ceasing to be Acting CEO. In this position, Yan will continue to oversee the business operations of both the Company's Module and System Solutions and Energy businesses. I am grateful for Yan's leadership during my recovery period and look forward to continuing to work closely with him in the future."

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

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