GUELPH, ON - Canadian Solar (NASDAQ:CSIQ) Inc. (NASDAQ: CSI) reported a stronger-than-expected adjusted first-quarter earnings per share (EPS) of $0.19, surpassing the analyst consensus of a $0.01 loss.
However, revenue slightly missed expectations at $1.33 billion against the anticipated $1.35 billion. Following the announcement, the company's stock fell 0.68%.
The company's revenue for the first quarter marked a 22% decline year-over-year (YoY). Despite this decrease, Canadian Solar's gross margin improved sequentially to 19.0%, at the high end of their guidance range, and was primarily driven by lower manufacturing costs and a higher margin contribution from battery energy storage solutions sales, partially offset by lower module average selling prices (ASP).
For the second quarter of 2024, Canadian Solar provided guidance that fell short of analyst expectations. The company forecasts revenues between $1.5 billion and $1.7 billion, with a gross margin of 16% to 18%. This guidance is below the analyst consensus of $2.086 billion for the quarter. Module shipments are expected to be in the range of 7.5 GW to 8.0 GW, and battery energy storage shipments are anticipated to be between 1.4 GWh to 1.6 GWh.
Looking ahead to the full year, Canadian Solar anticipates total module shipments to be between 35 GW to 40 GW and total battery energy storage shipments in the range of 6.0 GWh to 6.5 GWh. The company's projected total revenue for 2024 is set to be between $7.3 billion and $8.3 billion.
Dr. Shawn Qu, Chairman and CEO, commented on the results, stating, "We continue to apply tailored strategies across our diverse businesses. In our module business, we are concentrating on profitable growth and expanding our market share in key strategic markets." He also highlighted the company's focus on technological innovation and the strong position of their e-STORAGE platform, which is on track for a record-breaking year.
The company's financial health remains solid, with total assets surpassing $12 billion, driven by significant growth in project assets and solar power systems. Canadian Solar concluded the quarter with a strong cash position of $2.9 billion.
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