What: Shares of solar manufacturer Canadian Solar (NASDAQ:CSIQ) jumped 12.9% in February after management said it will beat fourth-quarter guidance.
So what: Megawatt guidance increased 50 MW to 1,350 MW-1,400 MW for the fourth quarter. Revenue will also be $90 million higher than expected, at $1.02 billion-$1.07 billion. Management didn't update investors on what its bottom line will look like, but said gross margin will be above the guidance range of 13% to 15%.
The other great sign is that Canadian Solar suspended a plan to sell shares at the market price after raising $13.6 million. That's a sign that improving financials will allow the company to operate sustainably for the foreseeable future.
Now what: The booming solar market around the world has been great for solar manufacturers, and 2016 should be no different. There's an increasing appetite everywhere from the U.S. to Africa to build solar systems, and installers are looking for high-quality manufacturers like Canadian Solar. There's still a lot of risk, as we've seen with multiple solar bankruptcies in the last few years, but right now, the future looks very bright for Canadian Solar.
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.