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Canadian Solar (CSIQ) to Report Q4 Earnings: What's in Store?

Zacks Equity Research
·3-min read

Canadian Solar Inc. CSIQ is slated to report fourth-quarter and full-year 2023 results on Mar 14, before the opening bell.

In the last reported quarter, the company delivered a negative earnings surprise of 64.84%. CSIQ has a trailing four-quarter average earnings surprise of 67.89%.

Factors to Note

Weak residential solar demand might have had impacted module shipment for Canadian Solar in the fourth quarter. This might have also led to lower project sales, which, along with lower module price, can be expected to have adversely impacted CSIQ’s revenues in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for revenues is pegged at $1.65 billion, indicating a 16.3% decrease from the year-ago quarter’s level.

Canadian Solar Inc. Price and EPS Surprise

Canadian Solar Inc. Price and EPS Surprise
Canadian Solar Inc. Price and EPS Surprise

Canadian Solar Inc. price-eps-surprise | Canadian Solar Inc. Quote

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Declining input costs, owing to lowering polysilicon prices, are likely to have favorably contributed to CSIQ’s fourth-quarter earnings.

However, higher costs incurred due to the ramp-up in manufacturing of its N-type TOPCon cell must have put downward pressure on Canadian Solar’s overall fourth-quarter bottom line. Moreover, increased interest expenses backed by a high-interest rate environment in the U.S. economy during the fourth quarter might have also adversely impacted its earnings. Also, a lower average selling price for solar modules is expected to have reduced CSIQ’s earnings year over year.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at a loss of 13 cents per share, indicating a significant deterioration from the year-ago quarter’s reported profit of $1.11.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Canadian Solar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is not the case here.

Earnings ESP: CSIQ’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Canadian Solar currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Solar Releases

SolarEdge Technologies, Inc. SEDG reported a fourth-quarter 2023 adjusted loss of 92 cents per share, narrower than the Zacks Consensus Estimate of a loss of $1.47. The figure deteriorated from the prior-year quarter’s reported profit of $2.86 per share.

The company’s quarterly revenues of $316 million missed the Zacks Consensus Estimate of $320 million by 1.2%. The top line also declined 64.5% from the year-ago quarter’s figure of $890.7 million.

Enphase Energy, Inc. ENPH reported fourth-quarter 2023 adjusted earnings of 54 cents per share, indicating a 64.2% decline from $1.51 reported in the prior-year quarter. The bottom line was on par with the Zacks Consensus Estimate.

Enphase Energy’s fourth-quarter revenues of $302.6 million missed the Zacks Consensus Estimate of $327 million by 7.5%. The top line also declined 58.2% from the prior-year quarter’s reported figure of $724.7 million.

SunPower Corporation SPWR reported a fourth-quarter 2023 adjusted loss of 51 cents per share against earnings of 11 cents in the prior-year period. The loss was wider than the Zacks Consensus Estimate of a loss of 27 cents per share.

During the quarter under review, SunPower’s adjusted revenues totaled $361.3 million, while GAAP revenues amounted to $356.9 million. The GAAP top line deteriorated 28.3% from the year-ago quarter’s figure of $498 million. The Zacks Consensus Estimate for sales was pegged at $365 million.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Canadian Solar Inc. (CSIQ) : Free Stock Analysis Report

SunPower Corporation (SPWR) : Free Stock Analysis Report

Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report

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Zacks Investment Research