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Market Overview

Earnings Preview: Canadian Solar

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On Thursday, March 18, Canadian Solar (NASDAQ:CSIQ) will release its latest earnings report. Benzinga's outlook for Canadian Solar is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts are expecting Canadian Solar to report a loss of $0.55 per share. Revenue will likely be around $997.88 million, according to the consensus estimate. In the same quarter last year, Canadian Solar reported EPS of $1.04 on revenue of $919.71 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be down 152.88%. Sales would be up 8.5% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate -0.05 -0.04 0.86 0.45
EPS Actual 0.15 0.09 1.84 1.04
Revenue Estimate 861.93 M 662.95 M 792.65 M 865.46 M
Revenue Actual 914.36 M 695.85 M 825.63 M 919.71 M

Stock Performance

Over the last 52-week period, shares are up 192.46%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Canadian Solar is scheduled to hold the call at 08:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings