Send me real-time posts from this site at my email
Zacks

Canadian Solar (CSIQ) Surpasses Q2 Earnings and Revenue Estimates

Canadian Solar (CSIQ) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.18 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 52.86%. A quarter ago, it was expected that this solar wafers manufacturer would post a loss of $0.05 per share when it actually produced earnings of $0.14, delivering a surprise of 380%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Canadian Solar, which belongs to the Zacks Solar industry, posted revenues of $2.31 billion for the quarter ended June 2022, surpassing the Zacks Consensus Estimate by 3.71%. This compares to year-ago revenues of $1.43 billion. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Canadian Solar shares have added about 25.4% since the beginning of the year versus the S&P 500's decline of -10.3%.

What's Next for Canadian Solar?

While Canadian Solar has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Canadian Solar: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.92 on $1.97 billion in revenues for the coming quarter and $3.06 on $7.45 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Solar is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

One other stock from the same industry, Azure Power (AZRE), is yet to report results for the quarter ended June 2022.

This solar power producer is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +15.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Azure Power's revenues are expected to be $78.8 million, up 32% from the year-ago quarter.


Free: Top Stocks for the $30 Trillion Metaverse Boom

The metaverse is a quantum leap for the internet as we currently know it - and it will make some investors rich. Just like the internet, the metaverse is expected to transform how we live, work and play. Zacks has put together a new special report to help readers like you target big profits. The Metaverse - What is it? And How to Profit with These 5 Pioneering Stocks reveals specific stocks set to skyrocket as this emerging technology develops and expands.

Download Zacks’ Metaverse Report now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Canadian Solar Inc. (CSIQ): Free Stock Analysis Report
 
Azure Power Global (AZRE): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue