Canadian Solar (NASDAQ: CSIQ) reported Q2 EPS of ($0.15). Revenue for the quarter came in at $692.4 million versus the consensus estimate of $628.47 million.

Business Outlook

The Company\'s business outlook is based on management's current views and estimates with respect to operating and market conditions, its current order book and the global financing environment. It is also subject to uncertainties relating to customer final demand and solar project construction schedules. Management\'s views and estimates are subject to change without notice.

For the third quarter of 2017, the Company expects total solar module shipments to be in the range of approximately 1.65 GW to 1.70 GW, including approximately 86 MW of shipments to the Company\'s utility-scale solar power projects that may not be recognized as revenue in the third quarter of 2017. Total revenue for the third quarter of 2017, which includes revenue from both ofour solar module sales and from our energy business, is expected to be in the range of $805 million to $825 million. Gross margin for the third quarter of 2017 is expected to be between 15% and 17%.

The Company reiterates its expectation that total module shipments in 2017 will be in the range of 6.0 GW to 6.5 GW. The module shipments recognized in revenue and total annual revenue will depend on market conditions, including ASP trends. The Company continues to expect it will connect approximately 1 GW to 1.2 GW of new solar projects globally in 2017, based on the commercial operation date (COD). These projects are located in the U.S., Japan, China, the UK, India, Brazil and Africa. The revenue from the Company\'s energy business will mainly come from the monetization of the Company's high quality solar power plant assets in the U.S., Japan, China, UK, India and Brazil. Management expects that the increase in vertical integration along the manufacturing cycle will help the Company maintain or improve its gross margin.

GUIDANCE:

Canadian Solar sees Q3 2017 revenue of $805-825 million, versus the consensus of $1.04 million.

Second Quarter 2017 Highlights

• Total solar module shipments were 1,745 MW, compared to 1,480 MW in the first quarter of 2017, and second quarter guidance in the range of 1,530 MW to 1,580 MW.
• Net revenue was $692.4 million, compared to $677.0 million in the first quarter of 2017, and second quarter guidance in the range of $615.0 million to $635.0 million.
• Net revenue from the total solutions business as a percentage of total net revenue was 6.5% compared to 18.8% in the first quarter of 2017.
• Gross margin was 24.2%, including the benefits of two AD/CVD reversals of $42.6 million and $15.0 million based on the final rates of Solar 1 AR3 and Solar 2 AR1, respectively. Gross margin was 15.9%, excluding these reversal benefit, compared to 13.5% in the first quarter of 2017, and second quarter guidanceof 13.0% to 15.0%.
• Net income attributable to Canadian Solar was $38.2 million, or $0.63 per diluted share, compared to a net loss of $13.3 million, or $0.23 per diluted share, in the first quarter of 2017.
• Non-GAAP net loss attributable to Canadian Solar, which excludes the AD/CVD reversal benefit and an insurance compensation gain, net of income tax effect, was $9.1 million, or $0.15 per diluted share, compared to a non-GAAP adjusted net loss attributable to Canadian Solar in the first quarter of 2017 of $6.0 million, or $0.10 per diluted share, which excludes a provision for LDK of $8.6 million, net of income tax effect. (For a reconciliation of GAAP to non-GAAP results, see accompanying tables \"Reconciliation of U.S. GAAP to Non-GAAP Financial Measures.\")
• Cash, cash equivalents and restricted cash balance as of June 30, 2017 was $961.6 million, compared to $961.4 million as of March 31, 2017.
• Net cash used in operating activities was approximately $83.4 million, compared to net cash used in operating activities of $55.8 million in the first quarter of 2017.
• The Company\'s portfolio of solar power plants in commercial operation was 1,260.2 MWp as of June 30, 2017, with an estimated total resale value of approximately $1.8 billion. Only the class B share value of the Company\'s tax equity deal projects in the U.S. was included in this resale value.
• In July 2017, the Company completed the sale of the 281 MWp Great Valley Solar project, previously called Tranquillity 8, to Sempra Renewables LLC, a unit of Sempra Energy.
• The Company completed the sale of an 80% interest in each of 191.5 MWp Pirapora I, 115 MWp Pirapora II and 92.5 MWp Pirapora III to EDF. EN do Brasil.

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