Canadian Solar (CSIQ) Beats on Revenue, Misses on EPS

Canadian Solar Inc. (CSIQ) is up 1.50% to $30.63 in the pre-market session Thursday after it reported fiscal results for the fourth quarter of 2014.

In its quarterly report, the solar power firm said it earned $1.28 per share, well below the $1.34 per share analysts were expecting. Revenue rose 84.1% to $956.2 million, above views for $953.94 million. Gross profit for the fourth quarter was $184.9 million, compared to $101.3 million yoy.

The company also reported 4Q total solar module shipments of 1,125 MW, compared to 770 MW in the 3Q of 2014.

For full-year 2014, Canadian Solar reported net revenue of $2.96 billion, compared to $1.65 billion in 2013. For Q1’15, the company guided revenues of $725-$775, as compared to analysts’ expectations of $713.18 million.

Michael G. Potter, Senior VP and CFO of Canadian Solar, stated: “2014 was a record year for shipments and profitability and a breakthrough year for our energy business, and the fourth quarter was a record fourth quarter. Our global module and energy business teams worked hard to deliver these strong results…”

On valuation measures, Canadian Solar Inc. shares, which currently have an average 3-month trading volume of 2.9 million shares, trade at a trailing-12 P/E of 9.44, a forward P/E of 7.08 and a P/E to growth ratio of 0.73. The median Wall Street price target on the name is $43.50 with a high target of $56.00. Currently ticker boasts 7 ‘Buy’ endorsements, compared to 1 ’Holds’ and no ‘Sell’.

Profitability-wise, CSIQ has a t-12 profit and operating margin of 7.32% and 10.67%, respectively. The $1.66 billion market cap company reported $1.02 billion in cash vs. $134.3 million in debt in its most recent quarter.

CSIQ currently prints a one year loss of about 31% and a year-to-date return of around 25%.

Canadian Solar Inc. manufactures and sells solar wafers, cells, and solar module products worldwide. The company was founded in 2001 and is headquartered in West Guelph, Canada.

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