CSIQ Earnings Prediction
The chart below shows how CSIQ performed 10 days before and after its earnings report, based on data from the past quarters. Typically, CSIQ sees a +1.53% change in stock price 10 days leading up to the earnings, and a -2.65% change 10 days following the report. On the earnings day itself, the stock moves by -1.56%. This data can give you a slight idea of what to expect for the next quarter's release.
CSIQ Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.52B
-10.62%
0.90%
Gross Margin
14.27%
13.80%
-13.04%
Operating Margin
-8.35%
-27933.33%
-41850.00%
Net Margin
-8.90%
4584.21%
2125.00%
EPS
0.46
2400.00%
-319.05%
No Data Available
CSIQ Earnings Analysis
Canadian Solar Inc Corporation (CSIQ.O) Earnings Conference Call
Positive
Solar Module Shipments: In Q4 2024, Canadian Solar shipped 8.2 gigawatts of solar modules, contributing to a total of 31.1 gigawatts for the year, showcasing strong operational performance despite market challenges.
Net Income Resilience: The company generated a net income of $34 million or $0.48 per diluted share, demonstrating resilience in a difficult operating environment.
Record Energy Storage Shipments: Canadian Solar's energy storage segment achieved record-breaking shipments of 2.2 gigawatt hours in Q4, totaling 6.6 gigawatt hours for the year, reflecting a more than 500% year-over-year increase.
Gross Margin Achievement: The company maintained a disciplined order-taking strategy, which helped achieve a gross margin of 18.4% for the CSI Solar business, despite falling average selling prices (ASPs).
Strong Backlog and Pipeline: Canadian Solar's backlog stands at $3.2 billion, providing strong visibility for future revenue, while the project pipeline has reached a record 79 gigawatt hours, indicating diversified global demand.
US Manufacturing Progress: The company is on track with its US manufacturing facilities, which will contribute significantly to domestic production and help meet local content requirements.
Energy Storage Solutions: Canadian Solar's energy storage solutions, particularly the SolBank 3.0, are positioned to meet the growing demand for reliable, around-the-clock clean energy, enhancing its competitive edge in the market.
Negative
Decline in Solar Revenue: In Q4 2024, Canadian Solar shipped 8.2 gigawatts of solar modules, but total revenue for the year was only US$6 billion, indicating a decline due to global module pricing and lighter project sales.
Gross Margin Decline: The company faced significant gross margin pressure due to inventory write-downs, trade-related duties, tariffs, and project asset impairments, which collectively reduced gross margin by over 950 basis points.
Increased Operating Expenses: Operating expenses increased due to elevated freight costs and impairments to solar power and battery energy storage systems, leading to a net income of only $34 million, which was significantly impacted by accounting adjustments.
Solar Industry Market Downturn: The solar industry is experiencing a prolonged market downturn with structural overcapacity, leading to intensified competition and significant losses reported by major manufacturers.
Revenue Impact from Delays: Canadian Solar's financial results were negatively affected by project delays, with some project sales pushed into 2025, resulting in revenue sitting at the lower end of guidance at $1.5 billion for Q4.
Surge in Administrative Expenses: General and administrative expenses surged by 120% sequentially, driven by impairments totaling $86 million to manufacturing assets and solar power systems, which significantly impacted operating margins.
Net Loss Despite Positive Income: The company reported a total net loss before non-controlling interest of $135 million, highlighting the financial strain despite a positive net income attributable to shareholders due to accounting impacts.
Lower Gross Margin Forecast: The forecast for Q1 2025 indicates expected gross margins to be lower than usual, primarily due to seasonally lower energy storage shipments and ongoing tariff impacts.
CSIQ FAQs
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CSIQ Earning Call Sentiment
Canadian Solar Inc. (CSIQ) Q4 2024 Earnings Call Transcript
CSIQ.O
3.78%Positive
Despite a record high in energy storage shipments, the company experienced significant gross margin reductions and increased operating expenses, resulting in a net loss. The Q&A highlighted uncertainties in pricing and geopolitical tensions, with management providing unclear responses on tariffs' impact. Although there are optimistic elements like backlog and cash flow, the negative financial results and unclear guidance lead to a negative sentiment. Given the small-cap status, the stock is likely to react negatively, falling between -2% to -8%.
