Earnings Previews: Canadian Solar, Hut 8, Li-Cycle

After markets closed on Monday, Coupa Software reported solid beats on profit and revenue estimates but said the company planned on continued investment in top-line growth and that it could take a number of years of robust growth in order to recover from the coronavirus pandemic’s impact on the company. Shares traded down about 17% shortly after Tuesday’s opening bell.

Westport Fuel Systems also beat profit and revenue estimates and shares traded up about 2% early Tuesday. CTI BioPharma was expected to report results on Monday but did not do so.

We already have previewed four companies set to report results after markets close Tuesday and before they open again on Wednesday (GoHealth, Jabil, Markforged and SentinelOne) and three more reporting results after Wednesday’s closing bell or first thing Thursday morning (Commercial Metals, Dollar General, and Lennar).

Here is a look at three more companies scheduled to report earnings Thursday morning.

Canadian Solar

Solar module maker Canadian Solar Inc. (NASDAQ: CSIQ) has seen its share price fall by nearly 40% over the past 12 months. The stock’s annual high was posted last April, and its annual low in January. Canadian Solar announced a new 420W module Tuesday morning that the company says is well-suited for residential applications. The company has managed to pull its gross margin up to around 18.6%. Canadian Solar reports quarterly results first thing Thursday morning.

Just seven brokerages cover the stock, and four of those have given Canadian Solar a Hold rating. The other three rate the shares as a Buy or Strong Buy. At the recent price of around $28.30 per share, the upside potential to the consensus price target of $41.00 is 44.91%. At the high target of $55.00, the implied upside is 94.3%.

Analysts are forecasting fourth-quarter revenue of $1.59 billion, which would up 29.4% sequentially and 52.9% higher year over year. Adjusted earnings per share (EPS) are forecast at $0.13, down 70% sequentially but up 18.2% year over year. Estimates for the 2021 fiscal year call for sales of $5.34 billion, up 53.6%, and EPS of $1.09, down 50%.

Shares trade at 26.2 times expected 2021 EPS,17.8 times estimated 2022 earnings of $1.61 and 12.2 times estimated 2024 earnings of $2.36 per share. The stock’s 52-week range is $23.25 to $51.00. Canadian Solar does not pay a dividend. Total shareholder return for the past year is negative 36%.

Hut 8

Shares of cryptocurrency mining company Hut 8 Mining Corp. (NASDAQ: HUT) have dropped by nearly 48% since mid-September of 2021. That is about three times larger than the drop in Coindesk’s bitcoin-U.S. dollar index. In the following chart, the blue line is Hut 8’s share price and the purple line is the bitcoin-dollar index.

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