Canadian Solar, When Bad Is Good (CSIQ, ENER, YGE)

The first quarter report from Canadian Solar Inc. (NASDAQ:CSIQ) was a little better than expected on the earnings front but weak on the top-line, posting a net EPS loss of -$0.13 on revenue of $49.5 million. Analysts had forecast a net EPS loss of -$0.26 on revenue of $54.08 million.

The interesting thing about the company’s report was the optimism going forward. Canadian noted that monthly shipments increased sequentially every month during the first quarter and that trend has continued into the second quarter. The company also expects additional shipment increases in the third quarter. But like solar panel makers Energy Conversion Devices, Inc. (NASDAQ: ENER) and Yingli Green Energy Holding Company Limited (NYSE:YGE), customer access to credit could tamp down sales and earnings.

Canadian expects to sell 200-220 megawatts of solar cells for all of 2009, but it is resuming its facility expansion to 420 megawatts based on what the company sees as its long-term demand.

Canadian Solar’s report had shares down almost 10% at the open, yet shares are now positive with the market as shares have just climbed back above the $10.05 level. The company’s 52-week trading range is $3.00 to $51.80.

Paul Ausick
May 26, 2009