The 10-second takeaway
For the quarter ended March 31 (Q1), Canadian Solar beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. GAAP loss per share contracted.
Margins increased across the board.
Canadian Solar reported revenue of $263.6 million. The two analysts polled by S&P Capital IQ hoped for a top line of $236.5 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $325.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.10. The two earnings estimates compiled by S&P Capital IQ predicted -$0.78 per share. GAAP EPS were -$0.10 for Q1 against -$0.49 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.7%, 200 basis points better than the prior-year quarter. Operating margin was 6.8%, much better than the prior-year quarter. Net margin was -1.7%, 490 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $365.5 million. On the bottom line, the average EPS estimate is -$0.34.
Next year's average estimate for revenue is $1.91 billion. The average EPS estimate is $0.79.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 971 members out of 1,128 rating the stock outperform, and 157 members rating it underperform. Among 161 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 give Canadian Solar a green thumbs-up, and 58 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Canadian Solar is outperform, with an average price target of $5.58.
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