Canadian Solar Inc. Fourth Quarter Earnings Sneak Peek

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Canadian Solar Inc. (NASDAQ:CSIQ) will unveil its latest earnings on Wednesday, March 7, 2012. Canadian Solar designs, develops, manufactures, and sells solar cell and solar module products that convert sunlight into electricity.

Canadian Solar Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 40 cents per share, up from profit of 58 cents in the year-earlier quarter. During the past three months, the average estimate has moved up from a loss of 42 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. For the year, analysts are projecting a loss of $1.01 per share, a swing from net income of $1.16 last year.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting net loss of $1.24 per share against an estimate of a loss of 51 cents per share. The quarter before that, it missed expectations by 5 cents.

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Wall St. Revenue Expectations: On average, analysts predict $485 million in revenue this quarter, a rise of 7.1% from the year-ago quarter. Analysts are forecasting total revenue of $1.88 billion for the year, a rise of 25.3% from last year’s revenue of $1.5 billion.

Analyst Ratings: Analysts seem relatively indifferent about Canadian Solar with seven of eight analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, the company swung to a loss of $43.9 million ($1.02 a share) from a profit of $20.3 million (47 cents) a year earlier, missing analyst expectations. Revenue rose 32.5% to $499.6 million from $377.2 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 47.2%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 78.1% from the year earlier quarter.

Canadian Solar reported a loss in the last quarter, which followed three quarters of profit. The company reported a profit of $7.1 million in the second quarter, a profit of $5.9 million in the first and a profit of $25.5 million in the fourth quarter of the last fiscal year.

Stock Price Performance: Between January 3, 2012 and March 1, 2012, the stock price had risen 87 cents (31.1%), from $2.80 to $3.67. The stock price saw one of its best stretches over the last year between June 20, 2011 and June 27, 2011, when shares rose for six straight days, increasing 15.7% (+$1.54) over that span. It saw one of its worst periods between July 22, 2011 and August 4, 2011 when shares fell for 10 straight days, dropping 21.8% (-$2.10) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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