Canadian Solar (CSIQ) Stock: Gaining on Strong Q2 Results

Canadian Solar Inc. (NASDAQ: CSIQ)

Canadian Solar is having a strong start to today’s trading session, and for good reason. The company reported its second quarter results, blowing analyst expectations away and exciting investors. Today, we’ll talk about what we saw from earnings, how the stock reacted to the news, and what we can expect to see from CSIQ ahead.

CSIQ Reports Strong Q2 Results

As mentioned above, Canadian Solar is having an incredible day in the market today, and for good reason. The company reported its results for the second quarter, blowing away expectations on both the earnings per share and revenue sides of the equation. Here’s what we saw from the report…

  • Earnings Per Share – In terms of earnings per share, CSIQ did incredibly well. During the second quarter, analysts expected that the company would report earnings in the amount of $0.37. However, the company nearly doubled this expectation. On their report, we saw that earnings for the quarter came in at $0.68 per share.
  • Revenue – When it comes to revenue, CSIQ definitely did not disappoint. During the second quarter, analysts expected that the company would generate revenue in the amount of $717.47 million. However, the company actually reported that revenue for the second quarter came in at $805.9 million; once again, blowing away expectations.
  • Shipments – During the second quarter, Canadian Solar said that total solar module shipments came to 1,290 MW. This showed incredible growth over the first quarter, when 1,172 MW were realized in shipping. The figure also came in well ahead of the guidance, which called for shipments in the range between 1,200 MW and 1,250 MW.

How The Market Reacted To The News

As investors, one of the first things that we learn is that it’s important to watch the news closely. After all, the news moves the market. When positive news is released with regard to a publicly traded company, we can expect to see gains in the market. Of course, negative news will lead to declines. In this particular case, the news that was released was overwhelmingly positive. So naturally, we’re seeing gains in the value of CSIQ as a result. Currently (10:08), the stock is trading at $14.31 per share after a gain of $2.10 per share or 17.20% thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from CSIQ, as it looks like most of their investors do. At the end of the day, the second quarter has been a very hard one for solar and other green energy companies. With several missed earnings reports in the industry earlier in the season, I think that many were expecting for Canadian Solar to produce much of the same results. Nonetheless, the company proved that even in a troubling time, it is capable of beating expectations. While guidance is slightly below analyst expectations for the third quarter and full year, I believe that the company is guiding low in order to produce a surprise during earnings season. All in all, things are looking great. So, I’m expecting to see further growth out of CSIQ.

What Do You Think?

Where do you think CSIQ is headed moving forward and why? Join the discussion in the comments below!