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Canadian Solar Inc CSIQ shares dipped after the company’s third-quarter earnings came in below analyst estimates.
The solar energy company did show growth in key areas, including profits of $1.12 per share ($78.47 million) on revenues of $1.93 billion.
Last year in the third quarter, Canadian Solar made profits of 52 cents per share ($35.24 million) on revenues of $1.23 billion. This indicates consumers are flocking to solar amid soaring European energy costs.
Read also: Rising Fuel Prices Are Good For Solar Stocks: SunPower’s Q3 Performance Is Proof
What Happened: Canadian Solar shares slid 6.39% after the earnings announcement, as the company guided light revenues ($1.8 billion – $1.9 billion) for the fourth quarter.
“We achieved a 123% increase in net income on a year-over-year basis, despite the headwinds from ongoing COVID-19 shutdowns and macroeconomic challenges,” Canadian Solar CEO Dr. Shawn Qu said. “We are also actively evaluating options in the U.S. market given the recent passing of the Inflation Reduction Act and its potential positive impact as another growth catalyst.”
Earnings Snapshot
- 18.8% gross margin exceeds the guidance range of 15.0% to 16.5%.
- 57% increase in revenue to $1.93 billion, compared to $1.23 billion in Q3 2021.
- 62% increase in solar module shipments to 6.0 GW, compared to 3.7 GW in Q3 2021.
- 123% increase in net income attributable to $1.12 per diluted share, compared to $0.52 per diluted share in Q3 2021.
“We achieved significant growth in both profit and volume during the third quarter, driven by strong demand, ongoing reductions in manufacturing cost, and currency benefits from a strong U.S. Dollar relative to the Renminbi,” Canadian Solar President Yan Zhuang said. “We are confident that energy storage will become an increasingly important driver of our long-term growth and value creation.”
Price Action: Shares recovered from the initial morning drop, closing 1.53% lower on Tuesday at $36.05
Read next: First Solar Gets 21% Price Target Bump By Analyst, Here’s Why
Photo by American Public Power Association on Unsplash
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Image and article originally from www.benzinga.com. Read the original article here.