Thunder Bay Airport, Ontario, Canada (Photo: Canadian Solar)
GUELPH, Ont. — It is clear that solar energy plays a significant part in Canada and global energy trends, but it wasnt until Canadian Solar announced its second-quarter earnings that analysts really knew how much. Yesterday, Canadian solar reported its second-quarter revenue and profit, which were well above analyst expectations. The Guelph-based company reported its net income was US$55.8 million or 95 cents per share and its revenue was US$623.8 million. This development caused stocks to jump 24 per cent on Wednesday.
Our second quarter shipments and revenue came in above the high end of our guidance led by strong module demand out of Japan, Germany, the U.K. and the US, as well as progress in the build-out of our utility-scale solar projects in Canada, said Shawn Qu, Canadian Solars chairman and chief executive.
Its shares jumped $6.06 to close at US$31.03 on Nasdaq, with nearly 19 million shares traded. According to Thomson Reuters, data suggested estimates of 69 cents per share of net income, or 58 cents after adjustments, with US$577.6 million of revenue. These expectations were greatly surpassed demonstrating Canadian Solars strength as a solar energy manufacturing giant, both nationally and globally.
Compared with the previous quarter ended March 31, the Canadian Solars revenues were up from $466.3 million and net income was up from $3.8 million or seven cents per share. Compared with a year earlier, its second-quarter revenue was up from $380.4 million and the profit compared with a net loss of $12.6 million, or 29 cents per share.
We believe we remain one of the solar industrys best positioned companies given our diverse manufacturing footprint and advanced-stage project pipeline in Canada, Japan, the U.S., and China, said Qu.
In Canada, it closed the C$60-million sale of the 10-megawatt Val Caron solar plant to Sudbury, Ont., to One West Holdings, an affiliate of Concord Green Energy during the second quarter. It also entered an agreement with a partnership formed by Samsung for the construction of a 140MW solar energy plant in Kingston, Ont.
The company has been undergoing significant growth since its creation in 2001. They currently work with over 1000 customers in over 70 countries. In addition to making equipment modules used to convert the suns power into electricity, Canadian Solar builds and sells utility-scale electric generation projects for investors.
Canadian Solar said eight of its projects in ontario are in commercial operation, three of them already sold to investors and five of them in the process of being sold. The company is looking to expand into the global markets and has solar-power projects under way or planned in the United States, Japan and China.
Qu also noted that Canadian Solar is making steady progress in key developing markets in Asia, the Middle East, Latin America and Africa. Canadian Solar hopes to capitalize on this global expansion and build strongholds in burgeoning markets. He sees robust demand for Canadian Solars solar energy solutions products and services across all geographies and market segments.
The company estimates its third-quarter revenue will be between $760 million and $810 million, with gross margin expected to be between 19 per cent and 21 per cent. Gross margin in the second quarter was 19 per cent, up from 14.7 per cent in the first quarter of 2014 and 12.8 per cent in the second quarter of 2013.
SOURCE Canadian Solar Inc.
