Earnings Preview: Canadian Solar

| About: Canadian Solar (CSIQ)
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Canadian Solar Inc. (NASDAQ:CSIQ) is scheduled to report its Q2 2012 results on August 15, 2012, before market opens. The street expects EPS and revenue of ($0.30) loss and $393.90M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from CSIQ and the news from its closest competitors.

Canadian Solar Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter it reported ($0.49) loss per share, beating analyst estimates of ($0.52) loss.

Canadian Solar Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is ($0.30) loss based on 6 analysts' estimates, down from $0.16 a year ago. Revenue estimates are $393.90M, down from $481.82M a year ago. The median target price by analysts for the stock is $3.55.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 17, 2012, Avian upgraded the company from Neutral to Positive.

Latest News

  • On June 25, 2012, Canadian Solar Inc announced a supply agreement. Under the agreement, Canadian Solar will supply up to 40 MW of high solar modules to Real Goods Solar to power a range of commercial and residential installations in the United States.
  • On June 7, 2012, Canadian Solar Inc. announced that its subsidiary, Canadian Solar Solutions Inc. and Horizon Energy Solutions Inc., have entered into an Engineering, Procurement and Construction (NYSE:EPC) agreement to construct commercial rooftop solar electricity generating facilities.
  • On May 3, 2012, Canadian Solar Inc. and Bank of China, New York Branch announced that they have signed a ground breaking financing agreement to provide a CAD120 Million construction loan facility for solar power plants in Ontario, Canada.
  • On April 17, 2012, Reuters reported that Canadian Solar Inc. will buy majority stake in 16 power projects from SkyPower Ltd for about CAD185 million ($184.7 million) as part of its plan to concentrate on smaller utility scale projects.


First Solar (NASDAQ:FSLR), JA Solar Holdings (NASDAQ:JASO), Suntech Power Holdings (NYSE:STP), Trina Solar (NYSE:TSL), and Yingli Green Energy Holding (NYSE:YGE) are considered major competitors for Canadian Solar and the chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

CSIQ Chart

CSIQ data by YCharts

Competitors' Latest Development

  • On August 8, 2012, Rigrodsky & Long, P.A. announced that a complaint has been filed in the United States District Court for the Northern District of California on behalf of all persons or entities that purchased the securities of Suntech Power Holdings Co., Ltd. between August 18, 2010 and July 30, 2012, inclusive (the Class Period), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers and directors (the Complaint).
  • On August 7, 2012, Ja Solar Holdings Co Ltd announced that it has signed a supply agreement with A Shade Greener (NYSE:ASG), a UK-based PV installer and installer of free solar panels to the residential market in the United Kingdom.
  • On August 3, 2012, Glancy Binkow & Goldberg LLP, representing investors of Suntech Power Holdings Co., Ltd. (Suntech or the Company), announced that it has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of a class (the Class) consisting of all persons or entities who purchased the American Depositary Shares of Suntech between August 18, 2010 and July 30, 2012, inclusive (the Class Period).
  • On August 2, 2012, First Solar, Inc. reported in its Form 8-K that effective July 30, 2012, Mr. Ahearn resigned as an employee of the Company and the Employment Agreement terminated.
  • On August 1, 2012, First Solar, Inc. announced that it is increasing fiscal 2012 guidance and expects net sales of $3.6-$3.9 billion, compared to prior guidance of $3.5-$3.8 billion.
  • On July 31, 2012, Rosen Law Firm, P.A. (and others) announced that it is investigating securities fraud claims against Suntech Power Holdings Co. Ltd. (Suntech). On July 30, 2012 Suntech issued an announcement that it was conducting an investigation into a security interest the Company purportedly received in connection with its investment in Global Solar Fund, S.C.A., Sicar, an investment fund.
  • On July 30, 2012, Ja Solar Holdings Co Ltd announced that it entered into a share transfer agreement (the Agreement) on July 23, 2012 with M.SETEK Co., Ltd. (M.SETEK), a polysilicon and solar wafer manufacturer in Japan controlled by AU Optronics Corp.
  • On June 26, 2012, Trina Solar Ltd announced that its board of directors and audit committee approved the appointment of KPMG as its independent auditors for the year ending December 31, 2012.
  • On June 20, 2012, enXco, an EDF Energies Nouvelles Company, announced that they have signed a solar module supply agreement with First Solar Inc. First Solar will deliver 61 megawatts peak (MWp) of thin film modules starting in September 2012 for enXco's Catalina Solar Project located in Kern County, California.
  • On June 14, 2012, Ja Solar Holdings Co Ltd announced that Board of Directors has approved a share repurchase program, effective immediately, that authorizes JA Solar to repurchase up to a USD100 million worth of its issued and outstanding American Depositary Shares (ADSs) prior to September 30, 2012.
  • On June 11, 2012, First Solar, Inc. and Intermolecular, Inc. announced a collaboration and licensing agreement aimed at accelerating the efficiency roadmap for First Solar's cadmium-telluride (CdTe) photovoltaic (PV) technology.

Technical Overview

The stock has a market capitalization of $119.55M and is currently trading at $2.77 with a 52 week range of $2.07 - $8.02. The stock's year-to-date performance has been 4.14%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.