Stock price when the opinion was issued
Canadian Solar shipments rose 62% to 8.2 gigawatts of modules in 2Q, reaching the midpoint of guidance, and could rise more than 40% to 30-35 GW for the year due to global demand. Sales were roughly flat in 2Q at $2.4 billion, affected by pricing pressure that could also crimp 3Q sales despite guidance calling for higher volumes. Yet full-year guidance ($9-$9.5 billion) is still probably achievable. Gross margin expanded to 18.6% in 2Q vs. 16% a year earlier, yet was flat sequentially. The company's battery rollout, which has a robust utility-scale pipeline of about $2.1 billion in 2Q, could ramp up further as management expects annual production capacity to grow to 10 gigawatt-hours (GWh) from 2.5 GWh by year-end. For the quarter EPS of $2.39 beat estimates of $152, and sales of $2.36B missed estimates of $2.47B.
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Our PAST TOP PICK with CSIQ has triggered its stop at $21. To remain disciplined, we recommend covering the position at this time.