Canadian Solar Inc. (NASDAQ: CSIQ)
Canadian Solar is having an incredible day in the market today, and for good reason. The company reported its earnings for the first quarter before the opening bell this morning. Not only did the company blow away expectations, it released upgraded guidance, exciting investors. Today, we'll talk about what we saw from earnings, how the market reacted to the news, and what we can expect to see from CSIQ moving forward. So, let's get right to it...
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CSIQ Produces Strong Earnings
As mentioned above, Canadian Solar reported its earnings for the first quarter before the bell this morning. The earnings report was overwhelmingly positive. Here's what we saw in the report:
- Earnings – In terms of earnings, CSIQ did incredibly well. During the first quarter, analysts expected that the company would produce earnings in the amount of $0.14 per share. However, the company nearly tripled this mark, generating earnings in the amount of $0.39 per share for the first quarter.
- Revenue – When it comes to revenue, CSIQ also did incredibly well. In the first quarter, analysts believed that Canadian Solar would generate revenue in the amount of $663.74 million. However, the company actually reported revenue in the amount of $721.4 million, blowing away expectations there as well.
- Guidance – Earnings and revenue were overwhelmingly positive, leading CSIQ to update guidance for the better. In the second quarter, the company is expecting to generate revenue in the range between $710 million and $760 million. When it comes to the full year, the company is expecting to generate revenue in the range between $3.0 billion and $3.2 billion. This was up from previous guidance when the company expected to generate between $2.9 billion and $3.1 billion throughout the year.
How The Market Reacted To The News
As investors, we know that the news moves the market. Any time there is positive news released with regard to a publicly-traded company, we can expect to see gains in the value of the stock that is representative of that company. Adversely, when negative news is released, declines are expected. In this particular case, the news surrounding CSIQ was overwhelmingly positive. As a result, we're seeing strong gains in the value of the stock at the moment. Currently (11:15), the stock is trading at $17.47 per share after a gain of $2.01 per share or 13.00% thus far today.
What We Can Expect To See Moving Forward
Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Canadian Solar. The reality is that even with oil prices down, consumers and businesses are more interested in solar power today than ever before. With the strong industry push, I'm expecting to see strong sales out of the company. Through the recent earnings report, CSIQ has proven its ability to capitalize on opportunities and shows the willingness to work hard to do so. With great products, a strong team, and incredible management, I'm expecting to see gains moving forward.
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What Do You Think?
Where do you think CSIQ is headed moving forward and why? Let us know your opinion in the comments below!
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