Canadian Solar (NASDAQ:CSIQ)’s Exceptional Sales

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By David Scouts on November 13, 2014 Technology & Software

Canadian Solar Inc. (NASDAQ:CSIQ) released its pre-market Q3 report on Wednesday. According to the report, the company boasts $0.56 EPS on $914.4 million worth of revenue. Previous year figures for the same period reported a meagre EPS of $0.56 with revenue that totaled up to $490.9 million. The solar panel makers have done exceptionally well, even in comparison to the Thomson Reuters prediction of $1.16 EPS and revenue worth $803.24.

These exceedingly good figures don’t just end there. The successive net income for Canadian Solar (NASDAQ:CSIQ) rose to $108.52 million, from the previous $55.12 million. Hence, an improved net income of a remarkable 225% on year-over-year basis has been calculated.

For the Q4 of current fiscal year, the company is expected to consign 810 to 860 MW of solar setups. This in turn will generate $925 million to $975 million in revenue that will increase the gross margin to a range of 17% to 19%. These projected figures might amiss the set target of $977.43 million.

These exceptionally elevated figures are a result of the recent sale of five solar plants for over $270 million. The sales of these utility scale setups in addition to their industrial setups active on full margin has helped take the gross figures up 22.9%.

SunEdison Inc. (NYSE:SUNE) is the only other solar panel maker that has performed better than Canadian Solar (NASDAQ:CSIQ), in a comparison drawn over last 12 months. The former has managed a notable trading of 42% higher, whereas the latter has transactional margin 10% higher.

Canadian Solar (NASDAQ:CSIQ)’s CEO has stated that the results for Q3 exceed expectations on several fiscal levels. And he awards this success to the profits achieved as a result of solar power business and the segmented commerce, putting forth great performance due to comparative sales and hike in consumer demand, which is expected to continue. As a result of this prominence, due to potential investment capital at hand and a stable position on the balance sheet, the company plans to operate even more effectively, come 2015.

For the future, Canadian Solar (NASDAQ:CSIQ) has an additional 500 megawatts of solar power, on charts, to be supplemented onto the Chinese setup. This is being planned for the Q1 and Q2 of the year 2015, which will bring the total Canadian Solar (NASDAQ:CSIQ) modular capacity to 3,500 megawatts. Other plans include increasing cell production capacity to 1,900 mw by Q2 end, and a 400 mw target margin for its wafer-manufacturing capacity during year ahead.

The share prices for Canadian Solar (NASDAQ:CSIQ) have seen an encouraging 9.5% increase, before the market opened on Wednesday. This brought the numbers at $34.41, whereas the range was $21.38 to $44.50 based on 52-week marginal statistics. Prior to the release of these figures, the projected price target as per the Thomson Reuters estimates was $43.25.

These figures look promising and investors can put their capital safely into the stocks, with least concerns for the years to come.