What happened

Smashing both top- and bottom-line estimates, Canadian Solar (CSIQ -0.94%) reported second-quarter 2022 earnings before the opening bell, and investors are basking in the results. But it's not only the company's recent performance that's shining brightly in investors' eyes. The company also provided an upwardly revised forecast for 2022, helping the stock to shoot higher.

As of 10:19 a.m. ET, shares of Canadian Solar are up 18.1%.

So what

Growing revenue 62% year over year, Canadian Solar reported sales of $2.31 billion for Q2 2022, surpassing analysts' expectations that it would book $2.23 billion on the top line. Besides increases in project sales, average selling prices, and solar shipment volumes, management attributed the substantial sales growth to "significant growth in the company's battery storage solutions business."

As surprised as investors were with the top of the income statement, the bottom provided an even greater shock. Canadian Solar reported Q2 2022 earnings per share of $1.07 -- notably higher than analysts' consensus estimate of $0.33.

Apparently, Canadian Solar is poised to maintain the significant revenue growth it achieved last quarter. During the Q2 2022 earnings presentation, management hiked its 2022 revenue forecast. While the company had originally forecast 2022 sales of $7 billion to $7.5 billion, it now projects revenue of $7.5 billion to $8 billion. Should the company achieve the midpoint of its revised guidance, it will represent 47% growth over the $5.3 billion it reported in 2021.

Now what

It's unsurprising that shares of Canadian Solar are soaring today, considering the company's strong earnings report and its increasingly bullish outlook on 2022. Renewable energy investors watching from the sidelines, who may be wondering if it's too late to power their portfolios with this solar leader, shouldn't conclude it's too late to pick up shares. Canadian Solar's stock is trading at 4.4 times operating cash flow, representing a discount to its five-year average cash flow multiple of 4.8.