Canadian Solar shares fall on wider-than-expected loss, weak guidance

EditorRachael Rajan
Published 05/12/2024, 10:30 pm
CSIQ
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KITCHENER, Ontario - Canadian Solar Inc. (NASDAQ:CSIQ) reported a wider-than-expected loss and issued weak guidance for the fourth quarter, sending shares down 2.27% in premarket trading on Thursday.

The solar panel maker posted a third quarter loss of $0.21 per share, missing analyst estimates for a loss of $0.11 per share. Revenue fell 18% YoY to $1.51 billion, also below the $1.71 billion consensus forecast.

For the fourth quarter, Canadian Solar expects revenue between $1.5 billion and $1.7 billion, well below Wall Street's projection of $2.15 billion. The company cited ongoing industry challenges for the soft outlook.

"The solar industry faces significant external and internal challenges. While we have achieved relatively strong results, the outlook remains complex," said Chairman and CEO Dr. Shawn Qu.

Despite the headwinds, Canadian Solar grew its energy storage contracted backlog to a record $3.2 billion as of November 30. The company also completed a $500 million investment from BlackRock (NYSE:BLK) in its Recurrent Energy subsidiary during the quarter.

Gross margin came in at 16.4%, above the company's guidance range of 14% to 16%. Total (EPA:TTEF) module shipments recognized as revenue were 8.4 GW in Q3, up 1% YoY.

For 2025, Canadian Solar expects total module shipments between 30-35 GW and battery storage shipments of 11-13 GWh.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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