Canadian Solar reported an EPS of -$0.31, missing the estimated EPS but beating the Zacks Consensus Estimate of a $0.44 loss.
The company’s revenue was $1.51 billion, below the estimated $1.71 billion, indicating a 10.69% miss from the Zacks Consensus Estimate.
Canadian Solar achieved a gross margin of 16.4%, surpassing its guidance and highlighting its operational efficiency.
Canadian Solar Inc. (NASDAQ:CSIQ) is a prominent player in the solar industry, known for its advanced manufacturing capabilities and robust international sales network. The company focuses on solar power products and energy storage solutions, competing with other industry giants in the renewable energy sector. Despite facing significant challenges, Canadian Solar remains committed to innovation and growth.
On December 5, 2024, Canadian Solar reported an earnings per share (EPS) of -$0.31, which was below the estimated EPS of -$0.17. However, this was better than the Zacks Consensus Estimate of a $0.44 loss, marking an earnings surprise of 29.55%. This result is a decline from the $0.32 per share reported in the same quarter last year, highlighting the volatility in the company’s earnings performance.
The company generated revenue of approximately $1.51 billion, falling short of the estimated $1.71 billion. This represents a 10.69% miss from the Zacks Consensus Estimate and a decrease from the $1.85 billion reported in the same period last year. Despite this, Canadian Solar has exceeded consensus revenue estimates twice in the last four quarters, indicating some resilience in its revenue generation.
Canadian Solar achieved a gross margin of 16.4%, surpassing its guidance range of 14% to 16%. Dr. Shawn Qu, Chairman and CEO, expressed confidence in the company’s strong performance and future prospects, emphasizing its commitment to research and development. The company’s early-mover advantage and focus on the energy storage sector are key factors for its growth.
The price-to-sales ratio is 0.12, suggesting the stock is undervalued in terms of revenue. However, the enterprise value to operating cash flow ratio is negative at -9.44, indicating challenges in cash flow generation. The debt-to-equity ratio of 1.81 shows a higher proportion of debt, while the current ratio of 0.94 suggests potential challenges in covering short-term liabilities.
