Canadian Solar Inc. (NASDAQ:CSIQ) Q3 2024 Earnings Conference Call December 5, 2024 8:00 AM ET Company Participants Shawn Qu - Chairman, President, Chief Executive Officer Yan Zhuang - President, CSI Solar Ismael Guerrero - President, Recurrent Energy Xinbo Zhu - Senior Vice President, Chief Financial Officer Thomas Koerner - Senior Vice President, Sales and Marketing Wina Huang - Head of Investor Relations Conference Call Participants Andre Adams - Oppenheimer Praneeth Satish - Wells Fargo Philip Shen - Ro ...

Canadian Solar 3Q24 Earnings Call December 5, 2024 Canadian Solar Inc. Safe Harbor Statement This presentation has been prepared by the Company solely to facilitate the understanding of the Company's business model and growth strategy. The information contained in this presentation has not been independently verified. No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or th ...

Core Insights - Canadian Solar reported a quarterly loss of $0.31 per share, which was better than the Zacks Consensus Estimate of a loss of $0.44, representing an earnings surprise of 29.55% [1] - The company posted revenues of $1.51 billion for the quarter ended September 2024, missing the Zacks Consensus Estimate by 10.69% and down from $1.85 billion year-over-year [2] - The stock has underperformed significantly, losing about 54% since the beginning of the year compared to the S&P 500's gain of 27.6% [4] Earnings Performance - Over the last four quarters, Canadian Solar has surpassed consensus EPS estimates four times [2] - The company had a favorable estimate revisions trend ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [7] Future Outlook - Current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $2.22 billion, and $0.41 on revenues of $6.9 billion for the current fiscal year [8] - The outlook for the solar industry is positive, with the Zacks Industry Rank placing Solar in the top 29% of over 250 Zacks industries, suggesting that the industry outlook can materially impact stock performance [9]

Financial Performance - In Q3 2024, Canadian Solar generated net revenues of $1.5 billion, a decrease of 8% quarter-over-quarter and 18% year-over-year[5]. - For Q3 2024, net revenues were $45,056 million, a decrease of 29.3% year-over-year from $63,806 million in Q3 2023[36]. - Net revenues for the three months ended September 30, 2024, were $1,507,624, a decrease of 18.3% compared to $1,846,285 for the same period in 2023[70]. - For the nine months ended September 30, 2024, total net revenues were $4,472,168, a decrease of 24.4% from $5,911,589 in the same period of 2023[74]. - The company reported a loss from operations of $294 for the three months ended September 30, 2024, compared to an income of $83,016 in the same period of 2023[70]. - Net loss for Q3 2024 was $6.1 million, a significant decline from net income of $27.4 million in Q2 2024 and $62.5 million in Q3 2023[79]. - The company reported earnings per share (EPS) of $(0.31) for Q3 2024, compared to $0.02 in Q2 2024 and $0.33 in Q3 2023[77]. Revenue and Shipments - Total module shipments recognized as revenues were 8.4 GW, up 2% quarter-over-quarter and 1% year-over-year[4]. - CSI Solar shipped 8.4 GW of solar modules and solar system kits in Q3 2024, with the top five markets being the U.S., China, Pakistan, Germany, and Brazil[37]. - For Q4 2024, total revenue is expected to be between $1.5 billion and $1.7 billion, with gross margin anticipated to be between 16% and 18%[51]. - For the full year of 2025, total module shipments are projected to be between 30 GW and 35 GW, and total battery energy storage shipments are expected to be between 11 GWh and 13 GWh[52]. Profitability - Gross profit for the quarter was $247 million, with a gross margin of 16.4%, down from 17.2% in Q2 2024 and 16.7% in Q3 2023[6]. - Gross profit for Q3 2024 was $14,418 million, resulting in a gross margin of 32.0%, compared to 27.7% in Q3 2023[36]. - Gross profit for the three months ended September 30, 2024, was $247,436, resulting in a gross margin of 16.4%, down from 16.7% in the same period last year[70]. Cash Flow and Liquidity - The company ended the quarter with a strong cash position of $2.8 billion, which will be strategically deployed for long-term growth[3]. - Cash and cash equivalents as of September 30, 2024, totaled $2,168,777, an increase from $1,614,146 at the end of the previous quarter[70]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $2,827,794,000, an increase from $2,192,241,000 at the end of the previous quarter[86]. - Net cash provided by financing activities was $1,271,293,000 for the three months ended September 30, 2024, significantly up from $187,598,000 in the previous quarter[86]. - The company reported a significant increase in cash flow from financing activities, totaling $2,182,303,000 for the nine months ended September 30, 2024, compared to $1,830,612,000 for the same period in 2023[86]. Debt and Liabilities - Total debt increased to $5.4 billion as of September 30, 2024, up from $4.2 billion as of June 30, 2024[14]. - Total liabilities increased to $9,563.0 million as of September 30, 2024, compared to $8,190.5 million at the end of 2023, reflecting increased borrowings[84]. - Short-term borrowings increased to $2,502.6 million in Q3 2024, up from $1,805.2 million at the end of 2023, indicating higher leverage[84]. Project Development and Future Outlook - Recurrent Energy signed a record number of long-term PPAs totaling 540 MWp of solar and 600 MWh of storage in Q3 2024[3]. - Recurrent Energy's total solar project development pipeline reached 26.4 GWp, with 1.7 GWp under construction[20]. - The battery energy storage project development pipeline totaled 66.1 GWh, including 9.8 GWh under construction and in backlog[28]. - e-STORAGE had a total project turnkey pipeline of over 60 GWh as of September 30, 2024, with a contracted backlog of $3.2 billion as of November 30, 2024[41][42]. - The company plans to establish a 6 GWh battery cell, module, and packaging manufacturing facility in Kentucky with an initial investment of over $300 million[54]. - Canadian Solar has developed approximately 11 GWp of solar power projects and 3.7 GWh of battery energy storage projects globally since entering the project development business in 2010[65]. Operating Expenses - Operating expenses totaled $247.1 million in Q3 2024, compared to $234.4 million in Q2 2024 and $225.0 million in Q3 2023, with R&D expenses increasing to $30.5 million from $25.6 million in Q2 2024[77].

KITCHENER, ON, Dec. 5, 2024 /PRNewswire/ -- Canadian Solar Inc. ("Canadian Solar" or the "Company") (NASDAQ: CSIQ) today announced financial results for the third quarter ended September 30, 2024.Highlights 16.4% gross margin, above guidance of 14% to 16%. Grew e-STORAGE contracted backlog to record $3.2 billion, as of November 30, 2024. Achieved final closing of BlackRock's $500 million investment in Recurrent Energy.Dr. Shawn Qu, Chairman and CEO, commented, "The solar industry faces significant external ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the ...

Canadian Solar has been transitioning their business structure. Rather than building solar power plants and then selling them immediately, Canadian Solar has been building solar power plants and keeping them. They then sell the electricity generatedI am interested in writing what others have not written. For instance, I plan on detailing how the Biden solar import duty (tax) policy is the greatest blockade in the growth of clean energy on our planet. My particular areas of interest include clean energy, Alz ...

GUELPH, ON, Nov. 7, 2024 /PRNewswire/ -- Canadian Solar Inc. ("the Company", "Canadian Solar") (NASDAQ: CSIQ) today announced that it will hold a conference call on Thursday, December 5, 2024, at 8:00 a.m. U.S. Eastern Time (9:00 p.m., December 5, 2024, in Hong Kong) to discuss the Company's third quarter 2024 results and business outlook.The dial-in phone number for the live audio call is +1-877-704-4453 (toll-free from the U.S.), +852 800 965 561 (from Hong Kong), +86 400 120 2840 (local dial-in from Main ...

Recurrent Energy's latest energy storage and solar tolling agreements with APS support Arizona's expanding energy needsGUELPH, ON and PHOENIX, Oct. 31, 2024 /PRNewswire/ -- Recurrent Energy, a subsidiary of Canadian Solar Inc. ("Canadian Solar") (NASDAQ: CSIQ) and a global developer, owner, and operator of solar and energy storage assets, announced today that it has signed two new tolling agreements with Arizona Public Service Company (APS).The 20-year tolling agreements encompass the Desert Bloom Storage a ...

Autodesk, Inc., Biogen Inc., EMD Electronics and Wayfair Inc. are now purchasing renewable energy from the Texas projectHOUSTON and GUELPH, ON, Oct. 31, 2024 /PRNewswire/ -- Recurrent Energy, a subsidiary of Canadian Solar Inc. ("Canadian Solar") (NASDAQ: CSIQ) and a global developer, owner, and operator of solar and energy storage assets, announced today that Liberty Solar, a 134 MW (100 MWac) solar project near Houston, Texas, has reached commercial operation.Liberty Solar is in Liberty County, Texas, abo ...