Canadian Solar Scorches First-Quarter Estimates

Canadian Solar, Inc. CSIQ opens the week up huge after blowing away both first-quarter earnings and revenue estimates. The West Guelph, Ontario-based firm's loss per share narrowed from $0.49 to $0.10, scorching estimates of a $0.78 loss. Revenue dropped 10.6 percent year-over-year to $263.61 million, but crushed the Wall Street consensus of $221 million. Rising in the East, Setting in the West Sales in the company's “Asia and others” segment skyrocketed 278 percent to $151.5 million. A 75.9 percent surge in solar module shipments to Japan led the boom in the Eastern Hemisphere, as the world's third-largest economy accounted for around one fourth of total solar module shipments. After representing just over 12 percent of total revenue in Q1 2012, the segment claimed 57.4 percent during the latest quarter. However, sales in both Europe and North America fell dramatically versus Q1 2012. In Europe, the global solar company generated less than half its year-ago revenue, finishing with $65 million. The reduced sales, at least in part, were due to the growing trade dispute between Europe and China as, according to Bloomberg Businessweek, the EU may levy anti-dumping tariffs of up to 67.9 percent on Chinese-made solar panels and related equipment. As Senior VP and CFO Michael G. Potter stated, the company “took a conservative approach to Europe in the first quarter and essentially halted module shipments directly to Europe from China in March pending further clarity around the potential tariff structure.” Meanwhile, North American sales plunged even further, closing at $47.1 million – about a third of its figure during the same period in 2012. Shedding Light on the Future Canadian Solar hasn't issued any ironclad EPS or revenue estimates. However, it expects to ship 380 to 420 MW of solar modules during the second quarter. At the middle-ground of 400 MW, it would fall shy of the 412 MW it closed Q2 2012 with. Of important note is that Japanese sales are expected to remain strong during the second quarter, with the Asian nation expected to account for 35 to 40 percent of total module shipments. For the year, the company expects to ship 1.6 to 1.8 GW, which would place it ahead of the 1.54 GW it finished fiscal 2012 at. Shining Strong on Wall Street After bottoming out below $3.25 in late March, Canadian Solar has come roaring back. The stock soared 166 percent over the ensuing two months to close at $8.61 on Friday. Now, after blowing away first-quarter estimates, it has risen to a 23-month high of over $10.50 in the early hours of trading. Canadian Solar, Inc. is up about 22 percent on Tuesday.