Canadian Solar Q2 Profit Down, Misses View, Cuts FY24 Outlook; Stock Dips In Pre-market

(RTTNews) - Canadian Solar Inc. (CSIQ) reported Thursday sharply lower profit in its second quarter below market estimates as revenues declined 31 percent from last year. The company also issued third-quarter revenue outlook below market, and trimmed its forecast for fiscal 2024 revenues.

In pre-market activity on the Nasdaq, Canadian Solar shares were losing around 9 percent to trade at $13.25.

In its second quarter, net income attributable to Canadian Solar was $3.82 million or $0.02 per share, lower than last year's $169.97 million or $2.39 per share.

Analysts on average expected the company to report earnings of $0.13 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Net revenues in the second quarter decreased 31 percent to $1.64 billion from last year's $2.36 billion. The Street was looking for revenues of $1.59 billion for the quarter.

The decrease primarily reflected a decline in module ASPs and lower project sales, partially offset by higher battery energy storage solutions sales.

Total module shipments recognized as revenues in the second quarter were 8.2 GW, which remained consistent year-over-year.

Looking ahead for the third quarter, the company expects total revenue to be in the range of $1.6 billion to $1.8 billion. Gross margin is expected to be between 14 percent and 16 percent.

Total module shipments recognized as revenues by CSI Solar are expected to be in the range of 9.0 GW to 9.5 GW.

Further, for fiscal 2024, the company now expects total revenue in the range of $6.5 billion to $7.5 billion, compared to previous outlook of $7.3 billion to $8.3 billion.

Analysts expect revenue of $2.18 billion for the quarter and $7.56 billion for the year.

For the full year, the Company expects total module shipments to be in the range of 32 GW to 36 GW.

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