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Canadian Solar (CSIQ) to Post Q2 Earnings: What's in Store?

Canadian Solar Inc. CSIQ is set to report second-quarter 2022 results on Aug 18, before market open.

In the last reported quarter, the company delivered a earnings surprise of 380.00%. In the trailing four quarters, the company came up with an earnings surprise of 154.03%, on average.

Factors at Play

With the increasing demand for solar projects, Canadian Solar continues to benefit from project monetization. To this end, we believe that in line with the company’s expectation, Canadian Solar must have picked up its pace of project monetization in the second quarter, from the softer cycles it experienced in the first quarter. This in turn must have boosted its revenues in the soon-to-be-reported quarter.

Canadian Solar Inc. Price and EPS Surprise

Canadian Solar Inc. price-eps-surprise | Canadian Solar Inc. Quote


With gradual economic recovery, the company has been witnessing an increase in average selling price (ASP) for modules. This, along with strong shipment volume, is likely to have bolstered Canadian Solar’s Q2 top line. The company’s Q2 results are likely to reflect solid shipment volumes, particularly from European and Asia-Pacific markets, excluding China.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.23 billion, suggesting an improvement of 56.1% from the figure reported in the year-ago quarter.

On the cost side, the company’s consistent efforts to reduce its processing cost must have benefited Canadian Solar’s Q2 bottom line. Also, lower transportation cost, witnessed in the first quarter, is expected to have prevailed in the second quarter, thereby boosting the company’s quarterly earnings. Further, with a gradual recovery in economic activities, shipping congestion in ports has improved, which along with favorable currency movements are expected to have strengthened overall earnings.

The Zacks Consensus Estimate for Q2 earnings stands at 70 cents per share, implying a significant improvement of 288.9% from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively predict 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 odds of an earnings surprise. But that’s not the case here, as you will see below.

Earnings ESP: Canadian Solar has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank of 2. You can see the complete list of today's Zacks #1 Rank stocks here.

Recent Solar Releases

Sunpower Corp. SPWR reported second-quarter 2022 adjusted earnings of 3 cents per share. The bottom line marked a deterioration from the year-ago quarter’s earnings of 7 cents per share.

The company’s adjusted revenues came in at $414.1 million, while its GAAP revenues were $417.8 million. Revenues surpassed the Zacks Consensus Estimate of $363 million by 14%.

Enphase Energy, Inc. ENPH reported second-quarter 2022 adjusted earnings of $1.07 per share, which improved by a solid 101.9% from 53 cents reported in the prior-year quarter.

Enphase Energy’s second-quarter revenues of $530.2 soared 67.7% from the year-ago quarter’s $316.1 million. For the third quarter of 2022, ENPH expects revenues in the range of $590-$630 million.

First Solar, Inc. FSLR reported second-quarter 2022 earnings of 52 cents per share, which beat the Zacks Consensus Estimate of 30 cents by 73.3%. However, the bottom line declined from the prior-year quarter’s earnings of 77 cents per share.

First Solar’s second-quarter sales were $621 million, which beat the Zacks Consensus Estimate of $599 million by 3.7%.

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Enphase Energy, Inc. (ENPH): Free Stock Analysis Report
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