What: Shares of Canadian Solar (NASDAQ:CSIQ) jumped as much as 17% after the company said it would beat its earnings guidance.
So what: Management said it delivered 1,350 MW to 1,400 MW of solar modules in the fourth quarter, 50 MW higher than previous guidance. Revenue is also expected to be $1.02 billion to $1.07 billion, $900 million higher than previously expected. Finally, gross margin will be above the high end of guidance of 13%-15%.
Now what: There are a number of tailwinds for Canadian Solar, including booming demand, a strong dollar, and rising sale prices for solar modules. The improving gross margin should also lead to solid profitability in the quarter and is a good sign for the solar industry in general. We'll know more when full results are released on March 10, but right now the operating momentum for Canadian Solar appears to be improving.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.