Canadian Solar Reports Mixed Results $CSIQ

I’ve been on vacation for a few days so didn’t get this out Thursdaynight, but Canadian Solar (CSIQ) reported mixed Q1 results.  The company posted a non GAAP EPS of $0.03, 4 cents lower than the analyst estimate of $0.07 on revenue of $336.9 million, vs estimate of $330.97 million.  Those numbers are big increase over the year ago quarter of -.13 on the EPS side and just $49.5 in revenue.  Shipments came in at 185MW in thequarter which is about a 30% improvement sequentially.  They seeshipments down a bit this quarter to 173 – 177MW and are reiteratingtheir full year guidance of 700 – 800MW.

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Perhaps more important than the quarterly earnings is the end ofthe auditing process which found that transactions identified in the SEC subpoena were properly accounted for.

CEO Dr. Shawn Qu commented on the quarter: “Demand remains verystrong in key solar markets worldwide and we continue to gain share ortake a leadership position in many new, developing markets. Givencurrent events, we are taking the opportunity to further strengthen ourinternal controls and procedures to better match our current globalmarket position and to support the ongoing growth we expect from large,well-established customers as well as newer industry participants. Ourmanagement also remains focused on our internal cell and waferexpansion. This expansion is consistent with our broader efforts tofocus on higher margin products, while also striving to reduce ourprocessing costs. Overall, we are very optimistic looking forward andexpect continued growth in revenues, and improvement in gross marginsand profitability.”

Shares of CSIQ were initially down nearly 10% Friday, but recoveredto finish near the flat line.  In my opinion, shares are becomingcompelling at current levels. 

Canadian Solar (CSIQ) Reported Mixed Results; Accounting Investigation Complete