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Canadian Solar Q4 Loss Wider Than Expected, Revenues Fall Y/Y
CSIQSolar(CSIQ) ZACKS·2025-03-26 15:51

Core Insights - Canadian Solar, Inc. (CSIQ) reported a fourth-quarter 2024 loss of 1.47pershare,whichissignificantlywiderthantheZacksConsensusEstimateofalossof21centspershareandadeclinefromthepreviousyear′searningsoftwocentspershare[1][2]−Thecompany′stotalrevenuesfor2024were1.47 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 7.23billionin2023,reflectingayear−over−yeardeclineprimarilyduetoadecreaseintheaveragesellingprice(ASP)foritsmodules[3]FinancialPerformance−InQ42024,CanadianSolar′srevenueswere7.23 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 1.58billionby3.71.58 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 344.1million,drivenbyimpairmentchargesandhighershippingandhandlingcosts[4]OperationalMetrics−Solarmoduleshipmentsforthequartertotaled8.2gigawatts(GW),aligningwiththecompany′sguidanceof8.0−8.5GWandreflectinga1344.1 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 89millioninthepreviousyear,attributedtoverticalintegrationinvestmentsandincreasedcapacityinstrategicmarkets[5]CashFlowandDebt−AsofDecember31,2024,CanadianSolar′scashandcashequivalentsstoodat89 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 1.94billionasofDecember31,2023[6]−Long−termborrowingsincreasedto1.94 billion as of December 31, 2023 [6] - Long-term borrowings increased to 2.49 billion from 1.27billionoverthesameperiod[6]FutureGuidance−ForQ12025,CanadianSolaranticipatestotalmoduleshipmentsbetween6.4−6.7GWandtotalrevenuesintherangeof1.27 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 1.0-1.2billion,whichisbelowtheZacksConsensusEstimateof1.2 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 7.3−7.3-8.3 billion [8][9]