Canadian Solar soars to new annual high on earnings beat

Posted Nov 17th 2009 12:20PM by Elizabeth Harrow
Filed under: Earnings Reports, Forecasts, Technical Analysis

Canadian Solar Inc. (CSIQ) tagged a new 52-week peak Tuesday morning in the wake of its latest earnings report. The solar company announced that it raked in a third-quarter profit of $25.3 million, or 69 cents per share, while revenue dipped 16% to $213.1 million. The results handily exceeded analysts' consensus expectations for a profit of 54 cents per share on $210.9 million in revenue.

Shipments for the recently concluded quarter more than doubled on a sequential basis, arriving at 102.6 megawatts (MW). For 2010, Canadian Solar said it expects shipments to range between 600 MW and 700 MW, compared to the current 2009 forecast for shipments of 295 MW to 305 MW.

CSIQ touched an intraday high of $21.05 in the wake of its quarterly report, marking its best price since Oct. 1, 2008. The stock has added 205% in 2009, guided higher by support at its 10-week and 20-week moving averages. Now, the equity is in position to notch a weekly finish above $20 per share for the first time since September 2008.

Short sellers are no doubt rushing to cover following Canadian Solar's stronger-than-expected report. Short interest accounts for 8.4% of the security's float, representing a respectable stockpile of sideline cash to fuel a post-earnings rally.

Elizabeth Harrow is a senior equities analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.

Tags: Canadian Solar, CSIQ, inthenews, shipments, short sellers, technical analysis, third-quarter earnings

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