Canadian Solar increased revenue and income in 2018, stock price tumbles

Canadian Solar Inc. achieved net revenue in the fourth quarter of 2018 of $901 million, an increase of 17.3 percent from $768 million in the third quarter of 2018. The revised fourth quarter 2018 guidance was $850 million to $900 million. Net income was $111.6 million, compared to net income of $66.5 million in the third quarter of 2018. Total solar module shipments in the fourth quarter of 2018 were 1,951 MW, compared to 1,590 MW in the third quarter of 2018 and the revised fourth quarter of 2018 guidance of 1,900 MW to 1,950 MW.
Regarding the full year 2018, net revenue was $3.74 billion, compared to $3.39 billion in 2017 and the revised full year guidance in the range of $3.69 billion to $3.74 billion. Net income was $237.1 million, compared to $99.6 million in 2017. Total solar module shipments were 6,615 MW, compared to 6,828 MW in 2017 and the revised full year guidance in the range of 6.56 GW to 6.61 GW.
For the first quarter of 2019, the Company expects total solar module shipments to be in the range of approximately 1.3 GW to 1.4 GW. Total revenue is expected to be in the range of $450 million to $480 million. For the full year 2019, the company expects total module shipments to be in the range of approximately 7.4 GW to 7.8 GW. Total revenue is expected to be in the range of $3.5 billion to $3.8 billion.
The Company has been operating in two principal businesses since 2016: MSS and Energy. The MSS business comprises primarily the design, development, manufacture and sale of solar modules, other solar power products and solar system kits. The MSS business also provides engineering, procurement and construction (EPC) and operating and maintenance (O&M) services. The Energy business comprises primarily the development and sale of solar projects, operating solar power projects and the sale of electricity.
However, after the company forecast weak figures in its 2019 outlook, in particular a turnover of only $450 to 480 million, the share price collapsed on Thursday and fell from around $23.60 to $19.30. Prior to this, however, it had also risen particularly strongly, by a good 60 percent from the beginning of January to mid-March.
© PHOTON

Related News