More Bad News: Canadian Solar Revises Q2 Estimates
Hardly a surprise after yesterday’s news from Suntech Power (STP :NYSE) and Trina Solar (TSL :NYSE), Canadian Solar (CSIQ :NYSE) revised its guidance for Q2 2012 and it doesn’t look good.
Shipments for Canadian Solar will improve from the relatively weak 343 megawatts (MW) shipped in Q1 but are now in the range of 410 to 420 MW versus the 430 to 450 MW originally offered.
On the positive side, gross margins will now be between 12 and 12.5 percent due to one-time charges, a solid improvement from the previous range of 8 to 10 percent.
Unfortunately Canadian Solar didn’t do a great job hedging its currency exchanges as the weaker Euro compared to the U.S. dollar will result in a $8 million charge for the quarter.
Considering Canadian Solar provided its original guidance on May 10, 2012, investors would have expected it to be a little more on target versus a company reporting earlier.
Because the bar for recent bad news has been set much higher, Canadian Solar was only down 1.42 percent in midday trading. Suntech Power continued its free fall by losing 17.54 percent and Trina Solar shed 8.54 percent.
