Proactive Investors - Canadian Solar Inc. (NASDAQ:CSIQ) shares fell sharply in Tuesday premarket trading after the company reported a decline in third-quarter revenue and earnings as the higher interest rates environment curtailed market demand.
Revenue for the quarter declined by 4% to $1.85 billion, below the $1.99 billion consensus estimate of analysts surveyed by Zacks Investment Research.
The Nasdaq-listed solar energy solutions provider said the decrease reflected lower project sales during the quarter and a decline in module average selling price, partially offset by higher solar module shipment volumes.
Total module shipments recognized as revenues in the third quarter of 2023 were 8.3 gigawatts (GW), up 39% year-over-year. Of the total, 82 MW were shipped to the company's own utility-scale solar power projects.
Net income sank 72% to $0.32 per share, well below the $0.91 per share expected by the Street.
During the quarter, the company said it continued to make strategic, long-term investments in key premium markets, including the recent announcement of its 5 GW solar cell facility in Jeffersonville, Indiana, and a 5 GW solar wafer facility in Thailand, both of which will serve US customers.
These will complement its 5 GW solar module facility in Mesquite, Texas, which is set to start production in a few weeks.
“As we navigate through short-term cyclical market fluctuations, our goal remains consistent which is to build on our long-term competitive position in a rapidly growing global market and deliver sustainable value for our shareholders,” chairman and CEO Dr Shawn Qu commented in a statement.
Ahead of the opening bell, the company's shares were down 16% at $18.20.