Yahoo Finance Canadian Solar (CSIQ) to Report Q1 Earnings: What's in Store?
Canadian Solar Inc. CSIQ is slated to report first-quarter 2024 results on May 9, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 84.62%. CSIQ has a trailing four-quarter average earnings surprise of 56.24%.
Factors to Note
The first quarter of a year is typically characterized by a seasonal slowdown after a rush to install projects at the end of the year. Therefore, anticipating that the first quarter of 2024 was a low installation quarter (seasonally), shipment volume for Canadian Solar might have been dismal, thereby adversely impacting its revenues. This, along with a decline in module average selling price (ASP), can be expected to have adversely impacted CSIQ’s top line in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for revenues is pegged at $1.28 billion, indicating a 25% decrease from the year-ago quarter’s level.
Declining input costs, owing to lowering polysilicon prices, are likely to have favorably contributed to CSIQ’s earnings.
Canadian Solar Inc. Price and EPS Surprise
Canadian Solar Inc. price-eps-surprise | Canadian Solar Inc. Quote
However, higher costs incurred due to the ramp-up in manufacturing of its N-type TOPCon cell might have put downward pressure on Canadian Solar’s overall first-quarter bottom line. Moreover, higher research and development expenses due to increased investments in new technologies, as well as increased interest expenses, are expected to have reduced CSIQ’s earnings from the year-earlier level.
The Zacks Consensus Estimate for first-quarter earnings is pegged at a loss of 26 cents per share, indicating a significant deterioration from the year-ago quarter’s reported earnings of $1.19.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Canadian Solar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: CSIQ’s Earnings ESP is +88.57%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Canadian Solar currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are a few other promising players from the same industry that, too, have the right combination of elements to beat on earnings this reporting cycle.
SolarEdge Technologies SEDG is set to report first-quarter earnings on May 8, after market close. It has an Earnings ESP of +2.69% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for earnings is pegged at a loss of $1.58 per share, while the same for sales is pinned at $194.8 million. The stock boasts a long-term earnings growth rate of 14.8%.
Nextracker Inc. NXT is slated to report fourth-quarter fiscal 2024 results on May 14, after market close. It has an Earnings ESP of +9.80% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for earnings is pegged at 59 cents per share, which suggests an improvement of 181% from the fourth-quarter fiscal 2023 reported figure. The Zacks Consensus Estimate for sales is pinned at $681 million, implying a 31.4% increase from that reported a year ago.
Array Technologies ARRY is expected to report first-quarter results on May 9, before market open. It has an Earnings ESP of +14.44% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for sales is pegged at $157.5 million, while that for earnings is pinned at a loss of 4 cents. The company delivered a trailing four-quarter average earnings surprise of 265.63%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report
Array Technologies, Inc. (ARRY) : Free Stock Analysis Report
SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
Nextracker Inc. (NXT) : Free Stock Analysis Report
