Canadian Solar Swings To Profit In Q1, But Sees Q2 Revenues Below View - Update

(RTTNews) - Solar power products company Canadian Solar Inc. (CSIQ) Friday reported a profit for the first quarter compared to a loss last year, as revenues surged about 77 percent, helped by strong demand in its key target markets, as well as a slightly higher average selling price for its modules. Results also reflected a foreign exchange loss in the prior year. The company issued revenue outlook for the second quarter below estimates, and reaffirmed full-year 2014 view. In the pre-market activity, the shares fell more than 9 percent.

For the quarter, net income attributable to the company was $3.78 million or $0.07 per share, compared to a net loss of $4.38 million or $0.10 per share in the prior year.

On average, five analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Net foreign exchange gain in the first quarter of 2014 was $0.9 million, compared to a net foreign exchange loss of $14.8 million a year ago.

Net revenues for the quarter surged 76.9 percent to $466.32 million from $263.61 million reported last year. Analysts estimated revenues of $431.98 million for the quarter.

Total solar module shipments increased to 500 MW from 340 MW a year earlier. Solar module shipments in the first quarter of 2014 included 49 MW used in the company's total solutions business, compared to 23 MW last year.

Shawn Qu, chairman and chief executive officer of the company said, "Both shipments and revenue for the first quarter exceeded our guidance, in this seasonally slow quarter. Demand remained strong in our key target markets, such as Canada, Japan, and the U.S., and we benefited from a slightly higher average selling price for our modules."

Looking ahead to the second quarter, the company expects total revenue to be in the range of $560 million to $590 million. Analysts expect the company to report revenues of $633.64 million for the quarter.

Gross margin is expected to be between 17 and 19 percent, and module shipments to be in the range of about 600 MW to 630 MW for the quarter.

For full year 2014, Canadian Solar still expects net revenue to be in the range of about $2.7 billion to $2.9 billion. Analysts expect the company to report revenues of $2.88 billion for fiscal 2014.

The company continues to anticipate annual module shipments to be in the range of 2.5 GW to 2.7 GW, including 400 MW to 500 MW of project recognition.

CSIQ closed Thursday's regular trading at $25.32, down 5.98 percent. In the pre-market activity on Friday, the shares are down 9.12 percent.