Canadian solar panel maker Canadian Solar Inc. (NASDAQ:CSIQ) reported earnings this morning before the market opened. Revenue for the third quarter was $252.4 million, higher than expectations of $248 million. Analysts expected EPS of $0.54, and instead got EPS of $0.31. The EPS included a foreign exchange loss of $17.3 million and a mark-to-market gain on derivatives of $7.4 million.
The company’s guidance is what’s really going to hurt. Everything hasbeen redirected to point down: production, margins, and earnings.Here’s the money quote: "Due to the present market environment,adjustments to the balance sheet may be necessary in order to reflectthe market value of inventory and receivables that could result in anet loss for the 4th quarter of 2008." Combine that with a projecteddrop in gross margin to 13%-15%, and Canadian Solar’s outlook is grim.
The share price is down nearly 93% from its 52-week high of $51.80.It’s moving down more by about 13% in pre-open trading this morning.
Paul Ausick
November 21, 2008
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
