The solar industry has been particularly hard hit by the global pandemic. Canadian Solar (NASDAQ:CSIQ) has not fared much better than its peers in recent weeks. The company has seen its valuation plummet over the past month as a result of the growing coronavirus problem. However, the company has seen a slight rebound recently after reporting strong Q4 results.
Canadian Solar reported a Q4 revenue of $919.7 million, which beat the company's own guidance of $850 million-$880 million. The company's Q4 EPS of $1.04 also came in higher than expectations by an impressive $0.53. Despite Canadian Solar's solid Q4, the company will likely experience strong near-term headwinds in light of the current pandemic-induced economic downturn.
Canadian Solar experienced a slight rebound after reporting strong Q4 results. However, the company is still down significantly as a result of the coronavirus.
Well-Positioned to Weather Downturn
Canadian Solar is coming off of a strong Q4 and 2019, beating expectations both in terms of profit and revenue. This puts Canadian Solar at a better position to handle the current economic downturn. The company generated $600 million in operating cash flow for the full year and $247 million in Q4 alone. The company's total cash position stands at around $1.2 billion will likely be vital in the coming quarters as the global pandemic rages on.
A strong balance sheet will be vital in surviving the near-term macroeconomic headwinds facing the solar industry. Canadian Solar has clearly done a good job of strengthening its financial position, which will pay off in the near-term. Still, Canadian Solar faces a great deal of uncertainty as no one knows how the pandemic will ultimately play out.
Strong Innovation
Canadian Solar maintains relatively high margins largely as a result of its investments into production capacity and perhaps more importantly R&D. The
