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Canadian Solar stock edges up on Q4 revenue beat

EditorRachael Rajan
Published 14/03/2024, 10:42
© Reuters.
CSIQ
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GUELPH, ON - Canadian Solar Inc. (NASDAQ: NASDAQ:CSIQ), a global leader in solar technology and renewable energy, reported a slight uptick in its stock price by 0.20% following the announcement of its fourth quarter financial results, which exceeded revenue expectations.

The company reported an adjusted earnings per share (EPS) of -$0.02 for the quarter, missing the analyst consensus estimate of $0.00. However, the company's revenue for the quarter was $1.7 billion, surpassing the consensus estimate of $1.69 billion.

Despite the revenue beat, Canadian Solar provided guidance for the first quarter of 2024 that fell short of analyst expectations. The company anticipates revenue in the range of $1.2 to $1.4 billion, significantly lower than the consensus estimate of $1.9 billion. This conservative forecast reflects the company's expectations for the upcoming quarter amidst a dynamic market landscape.

The company's fourth quarter performance highlighted its resilience in a competitive sector, with a 26% year-over-year (YoY) increase in solar module shipments, totaling 8.2 gigawatts (GW), which was above their own guidance range. The full year also saw record solar module shipments from CSI Solar, Canadian Solar's subsidiary, amounting to 30.7 GW, a 45% increase YoY, and record revenues of $7.6 billion.

Dr. Shawn Qu, Chairman and CEO of Canadian Solar, expressed confidence in the company's strategic positioning to capitalize on global opportunities in the solar and storage market. He emphasized the company's focus on addressing market demand through the swift transition to N-type TOPCon solar technology and strategic market operations, including the ramp-up of their Texas module factory.

The company's financial strength was also evident in its net income, with a record $274 million attributable to Canadian Solar for the full year, or $3.87 per diluted share. Their cash position, standing strong at $3 billion, provides a solid foundation for pursuing growth opportunities and strategic investments.

Canadian Solar's business outlook remains cautiously optimistic as they navigate through market conditions, supply chain constraints, and geopolitical conflicts. The company's strategic management of volume and its e-STORAGE business are expected to support gross margins and drive profit contributions moving forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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