Canadian Solar Q4 Loss Wider Than Expected, Revenues Fall Y/Y

Core Insights - Canadian Solar, Inc. (CSIQ) reported a fourth-quarter 2024 loss of $1.47 per share, which is significantly wider than the Zacks Consensus Estimate of a loss of 21 cents per share and a decline from the previous year's earnings of two cents per share [1][2] - The company's total revenues for 2024 were $6.46 billion, down from $7.23 billion in 2023, reflecting a year-over-year decline primarily due to a decrease in the average selling price (ASP) for its modules [3] Financial Performance - In Q4 2024, Canadian Solar's revenues were $1.52 billion, missing the Zacks Consensus Estimate of $1.58 billion by 3.7% and declining 10.6% from $1.70 billion in the same quarter last year [3] - The gross margin for the quarter was reported at 14.3%, which is below the company's guidance of 16-18% and represents a decline of 180 basis points year-over-year due to lower module ASP [4] - Total operating expenses increased by 61.7% year-over-year to $344.1 million, driven by impairment charges and higher shipping and handling costs [4] Operational Metrics - Solar module shipments for the quarter totaled 8.2 gigawatts (GW), aligning with the company's guidance of 8.0-8.5 GW and reflecting a 1% increase year-over-year [4] - Depreciation and amortization charges rose to $135 million from $89 million in the previous year, attributed to vertical integration investments and increased capacity in strategic markets [5] Cash Flow and Debt - As of December 31, 2024, Canadian Solar's cash and cash equivalents stood at $1.70 billion, a decrease from $1.94 billion as of December 31, 2023 [6] - Long-term borrowings increased to $2.49 billion from $1.27 billion over the same period [6] Future Guidance - For Q1 2025, Canadian Solar anticipates total module shipments between 6.4-6.7 GW and total revenues in the range of $1.0-$1.2 billion, which is below the Zacks Consensus Estimate of $1.4 billion [7] - The company expects a gross margin between 9% and 11% for the first quarter of 2025 [7] - For the full year 2025, total module shipments are projected to be between 30-35 GW, with total revenues expected to range from $7.3-$8.3 billion [8][9]