Canadian Solar Inc. (NASDAQ: CSIQ) reported its third-quarter fiscal 2023 revenue fell 4.5% year-over-year to $1.85 billion, missing consensus estimates of $2.03 billion have.
The 22% quarter-over-quarter revenue decline was due to lower project sales and lower average unit selling prices during the quarter, partially offset by increased solar module shipments.
Total module shipments reached 8.3 GW, up 39% year-on-year and 1% quarter-on-quarter. Gross profit fell 15% year over year to $308 million and margin fell 208 basis points to 16.7%.
Operating profit fell 6.4% year over year to $83.02 million and margin fell 10 basis points to 4.5%.
Earnings per share were $0.32, compared to $2.39 last quarter and $1.12 in 3Q22.
Canadian Solar reported nine-month operating cash flow of $494.62 million, up from $521.22 million a year ago. The company's cash balance at the end of the quarter was $2.99 billion in cash and cash equivalents.
As of November 14, 2023, CSIQ has an electronic storage reserve of $2.6 billion, half of which is expected to be delivered in 2024. These distributions can significantly increase gross and net margins, supported by favorable pricing conditions
As of September 30, 2023, Recurrent Energy had expanded its entire project portfolio to 26 GW of solar and 55 GW of battery storage.
“We continue to make long-term strategic investments in key high-end markets, including our 5 GW solar cell manufacturing facility in Jeffersonville, Indiana, and the recent announcement of our 5 GW solar wafer,” commented Dr. Sean Zhu, President and CEO. “The facility is located in Thailand and both will serve customers in the United States. This facility will complement our 5 GW solar panel manufacturing facility in Mesquite, Texas, which is expected to begin production in a few weeks. »
Learn more: Canadian Solar is investing more than $800 million in Indiana and plans to create 1,200 high-tech jobs by 2025
Outlook: For the fourth quarter of 2023, Canadian Solar forecasts total revenue of $1.6 billion to $1.8 billion versus the consensus estimate of $2.65 billion and gross margin of 14% to 16%. The company expects total module shipments recognized as revenue by CSI Solar to be between 7.6 and 8.1 GW and total battery shipments to be between 1.4 and 1.5 GW per hour.
In fiscal year 2023, CSIQ expects total module shipments to reach 42 to 47 GW and total battery shipments to reach 6.0 to 6.5 GWh.
Price Action: CSIQ shares fell 3.53% to $20.23 on Tuesday.
Technical Analysis: Expect shares of Canadian Solar (NASDAQ: CSIQ) to rebound from yesterday's 14.25% decline.
