Canadian Solar (CSIQ) is expected to announce its 2Q16 earnings results before market hours on August 15, 2016.
In this series, we’ll look at analysts’ expectations for Canadian Solar’s 2Q16 earnings. We’ll discuss factors that led analysts to arrive at these expectations. We’ll also look at the company’s 2016 guidance and the key indicators that investors should watch in its upcoming earnings.
Canadian Solar’s stock performance
From its 1Q16 earning release on May 11, 2016, to July 28, 2016, Canadian Solar’s stock price fell by nearly 17%. The stock prices of other major solar (TAN) companies such as First Solar (FSLR), SunPower (SPWR), and Trina Solar (TSL) witnessed similar trends during the same period.
SunEdison’s (SUNEQ) stock was the top loser among Canadian Solar’s peers. Company-specific factors caused SunEdison’s stock price to fall by nearly 30% during the same period. On April 21, 2016, SunEdison filed for chapter 11 bankruptcy protection.
The Guggenheim Solar ETF (TAN) tracks the broad-based solar market. It fell by nearly 1% during the same period.
Developments after 1Q16
On May 23, 2016, Canadian Solar announced the closure of its $52 million project financing facility with BayernLB. According to the company’s news release, the financing facility had aimed to refinance a 40.2 MW (megawatt) portfolio of its four solar power plants in the United Kingdom. The financing facility is of non-recourse (limited liability) in nature and has a term of 17 years.
On July 6, 2016, Canadian Solar announced that one of its wholly-owned subsidiaries in China had entered into a project sale agreement with Create Technology & Science. According to the company’s news release, Create Technology & Science agreed to purchase its operating solar power projects in Funing County, Jiangsu, China, for about $32.8 million.
The project sale agreement will be effective after Create Technology & Science receives approval from its board of directors and the proper regulatory authorities.
Next, let’s see how analysts rate Canadian Solar.