Canadian Solar's Q4 Module Shipments Shine Despite Revenue Dip, Eyes Conservative Q1 Outlook
Portfolio Pulse from Anusuya Lahiri
Canadian Solar Inc (NASDAQ:CSIQ) reported a 14% year-on-year decline in Q4 fiscal 2023 revenue to $1.70 billion, slightly above consensus estimates. Despite a decrease in module average selling price and lower project sales, total module shipments increased by 26% Y/Y to 8.2 GW. The company experienced a decrease in EPS to $(0.02), down from $1.11 in Q4 2022. Gross profit and margin also declined due to lower ASPs and an inventory write-down. Operating cash flow decreased to $190 million from $395.4 million last year. CSIQ provided a conservative Q1 outlook with expected revenue of $1.20 billion to $1.40 billion, below consensus estimates, and anticipates a gross margin of 17% - 19%. For fiscal 2024, revenue is expected to be between $8.50 billion and $9.50 billion, with total module shipments of 42 GW - 47 GW and battery energy storage shipments of 6.0 GWh - 6.5 GWh. CSIQ shares rose 1.15% in premarket trading.
March 14, 2024 | 1:34 pm
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NEUTRAL IMPACT
Canadian Solar reported a decline in Q4 revenue but exceeded consensus estimates. The company saw an increase in module shipments but faced lower ASPs and project sales. A conservative Q1 outlook was provided, with expected revenue below consensus estimates. Shares rose 1.15% in premarket trading.
The mixed Q4 results with a revenue decline but higher module shipments and a conservative Q1 outlook suggest a neutral short-term impact on CSIQ's stock price. The premarket share price increase indicates a positive investor response, but the conservative outlook could temper expectations.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100