- Canadian Solar Inc (NASDAQ: CSIQ) reported second-quarter FY21 revenue growth of 105% year-on-year to $1.43 billion at par with the analyst consensus.
- An increase in module shipments and average selling price (ASP), growth in beyond-module sales, and a higher revenue contribution from battery storage shipments drove the Q/Q growth of 31%.
- Total module shipments increased 26% Y/Y to 3.66 GW at the top end of 3.5 GW – 3.7 GW guidance.
- Margin: The gross margin contracted 830 bps to 12.9%, exceeding thea company guidance of 9.5% – 10.5%
- CSI Solar’s gross margin declined 910 bps to 13.1%. Global Energy’s gross margin reduced 610 bps to 4.2%.
- EPS of $0.18 beat the analyst consensus loss of $(0.30).
- Canadian Solar used $61 million in operating cash flow and held $1.3 billion in cash and equivalents.
- Canadian Solar is likely to benefit from demand for its solar and battery storage projects driven by the low cost of capital market players. It has a global solar project pipeline of 22 GW and a global battery storage project pipeline of 19 GWh.
- Outlook: Canadian Solar sees Q3 revenue between $1.2 billion – $1.4 billion below the analyst consensus of $1.62 billion. The company expects total module shipments between 3.8 GW – 4.0 GW. It considers a gross margin between 14% – 16%.
- Canadian Solar reiterated FY21 revenue between $5.6 billion – $6.0 billion compared to the analyst consensus of $5.9 billion. The company lowered the total module shipment guidance from 18 GW – 20 GW to 16 GW – 17 GW.
- Price Action: CSIQ shares traded lower by 0.05% at $41.46 in the premarket session on the last check Thursday.
Raymond James Initiates Coverage On Renewable Energy Gr with Outperform Rating, Announces Price Target of $72
Raymond James analyst Justin Jenkins initiates coverage on Renewable Energy Gr (NASDAQ:REGI) with a Outperform rating and announces Price Target of $72.
