A Glimpse of Canadian Solar's Earnings Potential

Canadian Solar CSIQ is set to give its latest quarterly earnings report on Thursday, 2025-05-15. Here's what investors need to know before the announcement.

Analysts estimate that Canadian Solar will report an earnings per share (EPS) of $-0.69.

The announcement from Canadian Solar is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

The company's EPS missed by $1.23 in the last quarter, leading to a 1.84% increase in the share price on the following day.

Here's a look at Canadian Solar's past performance and the resulting price change:

Market Performance of Canadian Solar's Stock

Shares of Canadian Solar were trading at $10.15 as of May 13. Over the last 52-week period, shares are down 35.8%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analysts' Take on Canadian Solar

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Canadian Solar.

The consensus rating for Canadian Solar is Neutral, derived from 2 analyst ratings. An average one-year price target of $8.5 implies a potential 16.26% downside.

Comparing Ratings with Peers

In this analysis, we delve into the analyst ratings and average 1-year price targets of Alpha & Omega, Wolfspeed and CEVA, three key industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for Alpha & Omega, with an average 1-year price target of $25.0, suggesting a potential 146.31% upside.
• Analysts currently favor an Buy trajectory for Wolfspeed, with an average 1-year price target of $5.67, suggesting a potential 44.14% downside.
• Analysts currently favor an Buy trajectory for CEVA, with an average 1-year price target of $38.83, suggesting a potential 282.56% upside.

Key Findings: Peer Analysis Summary

Within the peer analysis summary, vital metrics for Alpha & Omega, Wolfspeed and CEVA are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Canadian Solar is positioned in the middle compared to its peers in terms of consensus rating. It ranks at the bottom for revenue growth among its peers. In gross profit, it is at the top among the group. However, for return on equity, Canadian Solar is placed in the middle compared to its peers.

Discovering Canadian Solar: A Closer Look

Canadian Solar Inc is a Canadian solar technology and renewable energy company. It is a manufacturer of solar photovoltaic modules, a provider of battery energy storage solutions, and a developer of utility-scale solar power and battery energy storage projects.. It operates through two business segments CSI Solar and Recurrent Energy segment. The CSI Solar segment focused on solar modules and battery energy storage manufacturing and products. Its Recurrent segment focused on utility-scale solar power and battery energy storage project development and operation. Key revenue is generated from CSI Solar segment.

Financial Milestones: Canadian Solar's Journey

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Challenges: Canadian Solar's revenue growth over 3 months faced difficulties. As of 31 December, 2024, the company experienced a decline of approximately -10.62%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Canadian Solar's net margin is impressive, surpassing industry averages. With a net margin of 2.23%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Canadian Solar's ROE excels beyond industry benchmarks, reaching 1.19%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.25%, the company showcases effective utilization of assets.

Debt Management: Canadian Solar's debt-to-equity ratio stands notably higher than the industry average, reaching 2.1. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for Canadian Solar visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.