Canadian Solar shares dim to multiyear low on Q2 earnings miss, weak guidance

Canadian Solar (NASDAQ:CSIQ) -15.2% to a nearly six-year intraday low in Thursday’s trading after reporting much lower than expected Q2 earnings while guiding Q3 and full-year revenues below analyst estimates.

Other solar stocks also trade lower, including JinkoSolar (JKS) -7.6%, SolarEdge (SEDG) -6.8%, FTC Solar (FTCI) -6.7%, Maxeon Solar (MAXN) -6.5%, Emeren (SOL) -6.1%, Shoals Technologies (SHLS) -5.3%, Altus Power (AMPS) -4.7%, Enphase Energy (ENPH) -2.3%.

ETF: (TAN) -2.2%.

Canadian Solar’s (CSIQ) Q2 net income plunged to $3.8M, or $0.02/share, from $170M, or $2.39/share, in the year-earlier quarter, as revenues fell 30% Y/Y to $1.64B, which the company attributed to a lower module average selling price and lower project sales, partially offset by higher battery energy storage solutions sales.

Q2 gross margin was 17.2%, compared with 19% in Q1 and 18.6% in Q2 2023, also attributed to lower module ASPs.

Canadian Solar (CSIQ) said it shipped 8.2 GW of solar modules in Q2, up 30% Y/Y and above its guidance of 7.5-8.0 GW.

At the end of the quarter, the company said its total solar development pipeline reached 27 GWp – the maximum output of a solar power plant under ideal conditions – and its total battery energy storage development pipeline was 63 GWh.

For Q3, Canadian Solar (CSIQ) sees revenues of $1.6B-$1.8B, well below the $2.13B FactSet consensus, with gross margin expected at 14%-16%; total module shipments recognized as revenues by CSI Solar are forecast at 9.0-9.5 GW, and total battery energy storage shipments by CSI Solar are projected at 1.4-1.7 GWh, including 1.2 GWh to the company’s own projects.

For FY 2024, the company guided for revenues of $6.5B-$7.5B, below $7.62B FactSet consensus; total module shipments are expected in the 32-36 GW range, with CSI Solar’s total battery energy storage shipments of 6.5-7.0 GWh, including 1 GW and 2.5 GWh respectively to its own projects.