Why Canadian Solar (CSIQ) Stock Continues To Soar Today

NEW YORK (TheStreet) -- Shares of Canadian Solar Inc. (CSIQ) are up 23.47% to $30.83 as the solar panel maker reported record second quarter earnings and shipments.

Shares have increased 160% in the past year, behind best-performing REC Solar ASA and SunEdison  on the Bloomberg Intelligence Global Large Solar Index.

Second quarter net income rose to the highest ever at $55.8 million, or 95 cents per share, the company said. That beat the 58-cent average of six analysts’ estimates compiled by Bloomberg for profit excluding one-time items.

Shipments hit a record 646 megawatts, more than a May guidance of as much as 630 megawatts.

The company benefited from strong demand in Ontario, the U.S., Japan and China and is expanding its “high-margin” power-plant business, which contributed about one-third of revenue in the quarter, up from about 27% last quarter, according to CEO Shawn Qu on a call with analysts, according to Bloomberg.

For the third quarter, the company expects module shipments to be between 720 megawatts and 750 megawatts. For the year, it predicted shipments between 2.5 gigawatts and 2.7 gigawatts, and revenue between $2.7 billion and $2.9 billion.

 

TheStreet Ratings team rates CANADIAN SOLAR INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CANADIAN SOLAR INC (CSIQ) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins."

You can view the full analysis from the report here: CSIQ Ratings Report

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