Canadian Solar reports second quarter 2014 results
Guelph, Canada/ M
Sales increased by 30 percent
Compared to the previous quarter, the module sales in the second quarter increased by 30 percent up to approximately 650 MW (Q1: 500 MW). Thereby, the company was above the guidance range of 600 MW to 630 MW. Despite the declining margins on the photovoltaic sector, the net revenue of Canadian Solar has grown by 34 percent to about 624 Mio. US-Dollar (Q1: 466 Mio USD) and is above the second quarter guidance range of 560 million USD to 590 million USD. The net income rose from appr. 4 million USD (Q1) to 55.8 million USD. These are earnings per share of 0.95 USD. Analysts were expecting 0.58 USD. By geography, in the second quarter of 2014, sales to the Americas represented 55.5% of net revenue and is the most important sales market for the company, followed by Asia (appr. 30 percent) and Europe (appr. 15 percent).
Positive Q3 outlook
The expectations for the business development are positive. For the third quarter of 2014, the Company expects module shipments to be in the range of approximately 720 MW to 750 MW. Total revenue for the third quarter of 2014 is expected to be in the range of $760 million to $810 million.
Project pipeline
At the end of June 2014, the Company had a pipeline of late stage utility-scale solar projects totaling approximately 1.3 GW DC. These projects include owned and joint-venture projects as well as projects where the Company provides EPC services, such as entering into an EPC agreement with Kingston Solar LP for the construction of a 140 MW DC utility-scale solar power plant. This week, Canadian Solar announced that the Company executed a 44 MWp module sales agreement for seven solar farms in North Carolina.
Explosion of Stock price
As a result of the accumulation of positive news, there`s just one way for the stock price: going upwards. In the beginning of August, shares were trading at 17.5 Euro. Since that time, the share is always developing in a positive direction. On Wednesday, the Canadian Solar share gained 20 percent. Also on Thursday, the share price rose by 7.4 percent. The closing price was 24.13 Euro.
Source: IWR Online, 15 Aug 2014
