Canadian Solar (CSIQ) Reports Record Profit, Shipments To Double In 2010

Canadian%20Solar%20Logo Canadian Solar (CSIQ) Reports Record Profit, Shipments To Double In 2010

Canadian Solar (CSIQ) reported a strong Q3 EPSthis morning of $0.69 which was .14/share better than analyst estimatesand a more than 50% increase over the year ago quarter.  It’s also anew record for the company. Revenues were below the year ago quarter byabout 15% at $213 million, but was better than what analysts expected.

The CEO said European demand remains strong and contributed greatlyto the success in the quarter with 179% growth in that market.  Hereare some additional comments:

“Our flexible vertical integration model allowed us to capture thesharp increase in market demand during the quarter and to raise ourmodule sales faster than the growth of our internal cell capacity. OurR&D capability is another important competitive differentiator forCanadian Solar.  During the quarter, three of our solar module productsrecorded the highest scores for P-type solar modules during the PV USA(PTC) tests, which are mandatory for the California Solar Initiatives.Subsequent to the quarter end, we pre-launched our high-output premiumproducts using our enhanced selective emitter technology. Theseproducts are expected to have monocrystalline cell conversionefficiencies of 18.5% and multicrystalline cell efficiencies of 17%.
We are also in the process of testing a cost effective two-axis tracker.”

Looking ahead, the company is reiterating its Q4 shipments guidanceof 128 – 138MW and full year shipments guidance of 295 – 305MW.  For2010, the company estimates shipments in the range of 600 – 700MW.  Dueto the expectation of doubling its shipments next year, CSIQ willincrease solar module production capacity from 820MW to 1GW by the endof next April and cell production capacity from 420MW to 700MW by nextJune.  The expansion will allow the company to produce about 70% ofsolar cells internally while outsourcing the rest.

Shares of CSIQ are up about 3% in premarket trading and looking to break out to a new 52 week high.

Canadian Solar (CSIQ) Reports Record Profit & Expects To Double Shipments In 2010