Canadian Solar (CSIQ) - Get Canadian Solar Inc. Report stock fell on Thursday after the solar panel and module maker posted better-than-expected second-quarter earnings but lowered its full-year outlook on what it expects to be dimmer demand.
Canadian Solar said it earned $11 million, or 18 cents a share, in the second quarter, vs. net income of $20.4 million, or 34 cents a share, in the comparable year-ago period. On an adjusted basis, the company posted a loss of $2.41 million.
Revenue in the second quarter came in at $1.43 billion, roughly matching analysts’ forecasts, “… driven by an increase in module shipments and average selling price, growth in beyond-module sales and a higher revenue contribution from battery storage shipments,” the company said.
Total module shipments in the second quarter were 3.66 GW, a 26% year-over-year increase. Of that total, 167 MW was shipped to the company's own utility-scale solar power projects, Canadian Solar said.
For the third quarter, revenue is expected to be in the range of $1.2 billion to $1.4 billion, while total module shipments are expected to come in between 3.8 GW and 4.0 GW, including approximately 275 MW of module shipments to the company's own projects.
"The wider-than-usual revenue and profitability range for the third quarter reflects the timing of certain project sales which may be recognized towards the end of the quarter or early in the following one," Canadian Solar CEO Shawn Qu said.
Revenue is expected to be in the range of $5.6 billion to $6 billion, while module shipment guidance is expected to be between 16 GW and 17 GW, down from previous expectations of between 18 GW and 20 GW.
On Aug. 10, Canadian Solar said its Recurrent Energy subsidiary signed a 15-year “resource adequacy” agreement with Pacific Gas & Electric to provide 150 MW / 600 MWh of energy storage in phase 2 of the PG&E’s Crimson project.
The full Crimson project of 350 MW / 1,400 MWh will be one of the largest battery energy storage projects in the world when it comes online beginning in summer 2022.
At last check, shares of Canadian Solar were down 0.09% at $41.44. The stock has declined down 21.2% year to date.