Canadian Solar Reports Third Quarter 2018 Results

Canadian Solar (NASDAQ:CSIQ) announced its financial results for the third quarter of 2018 ended September 30, 2018 with the company reporting net revenue of US$768 million as compared US$650 million in second quarter of 2018.

The company said that the net revenue for the third quarter represents an 18 percent increase from the second quarter although it is 15 percent down as compared to the third quarter of 2017.

As quoted in the press release:

Net revenue in the third quarter of 2018 benefited from higher than expected module average selling prices, offset by the deferral of certain planned project sales. Third quarter of 2018 net revenue from the Company’s modules and systems solutions (“MSS”) business was $512.3 million, and was $255.7 million from the Company’s Energy business.

Third Quarter 2018 Highlights

• Net revenue was $768.0 million, compared to $650.6 million in the second quarter of 2018, and third quarter 2018 guidance in the range of $790 million to $840 million.
• Gross margin was 26.1%, compared to 24.5% in the second quarter of 2018, and third quarter guidance of 20.0% to 23.0%.
• Net income attributable to Canadian Solar was $66.5 million, or $1.09 per diluted share, compared to $15.6 million, or $0.26 per diluted share, in the second quarter of 2018.
• During the quarter, the Company completed the sale of solar power plants totaling 103 MWp, including 64 MWp in Japan.
• Net cash provided by operating activities was approximately $148 million, compared to net cash used in operating activities of $174 million in the second quarter of 2018.
• The Company’s portfolio of utility-scale solar power plants in operation was approximately 1.1 GWp with an estimated total resale value of approximately $1.23 billion, as of October 31, 2018. Only the value of class B shares, which the Company holds in its tax equity solar power plants in the U.S., is included in this resale value.

“The third quarter was one of our most profitable quarters with net income of $1.09 per diluted share and a 26.1% gross margin. Our results underscore the strength of Canadian Solar’s module and system solutions business and global energy business, and our team’s continued execution. Revenue was slightly lower than expected in the third quarter, while gross margin was higher than expected, as certain project sales with lower gross margins were deferred to later quarters,” Shawn Qu, CEO of Canadian Solar said.

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