KITCHENER, Ontario (TheStreet) -- Canadian Solar (CSIQ) - Get Report exceeded Wall Street targets with its third-quarter results on both the bottom and top lines Tuesday morning, and made a bold prediction for 2010, saying its shipments would double next year.
The news perhaps allowed investors to move past dilution concerns raised a month ago when the company sold about 7 million shares to the public. In premarket trading Tuesday, investors bid up the stock's price by 3% to $20.30 from the close in the previous session.
Canadian Solar said its net income came to $25.3 million, or 69 cents a share, up from $11 million, or 31 cents a share, a year ago. Revenue, however, fell 15.6% to $213 million from $252.4 million in the third period of 2008.
Analysts were expecting a per-share profit of 54 cents on revenue of about $211 million
When it announced its share offering, in October, Canadian Solar had also guided Wall Street higher with its revenue forecast for the quarter, telling analysts to expect as much as $215 million on the top line, based on better-than-expected sales volumes of its solar cells.
The company made a similar pronouncement in its earnings release. For 2009, Canadian Solar expects to ship solar systems and products with the ability to generate 295 to 305 megawatts. For 2010, it expects shipments of 600 to 700 megawatts.
Also, because of the demand it's now experiencing "from all major markets," the company says it plans to boost its manufacturing capacity to 1 gigawatt-worth of solar modules from the current 820 megawatts.
In a written statement, Canadian Solar's chief, Shawn Qu, made assurances that these predictions were based on more than just hope.
"We believe that we have reasonable visibility for our 2010 forecast based on our channel checks," he said. "We expect to more than double our shipments in 2010 and are preparing our capacity expansion accordingly."
-- Written by Scott Eden in New York
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Scott Eden has covered business -- both large and small -- for more than a decade. Prior to joining TheStreet.com, he worked as a features reporter for Dealmaker and Trader Monthly magazines. Before that, he wrote for the Chicago Reader, that city's weekly paper. Early in his career, he was a staff reporter at the Dow Jones News Service. His reporting has appeared in The Wall Street Journal, Men's Journal, the St. Petersburg (Fla.) Times, and the Believer magazine, among other publications. He's also the author of Touchdown Jesus (Simon & Schuster, 2005), a nonfiction book about Notre Dame football fans and the business and politics of big-time college sports. He has degrees from Notre Dame and Washington University in St. Louis.