Things were already not looking especially good for solar stock Canadian Solar (NASDAQ:CSIQ) just days ago when news of massive new tariffs on solar panels arrived. Now, Canadian Solar just released its earnings report mere hours ago, and investors aren’t happy. You can tell as much by the 12% loss the stock sustained so far in Tuesday afternoon’s trading.
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Canadian Solar’s earnings report turned out to be a mixed bag. While it won in earnings per share, it lost on revenue, and that was just the start of its troubles. Canadian Solar posted $2.39 per share in earnings, which blew analyst expectations of $1.34 per share out of the water. That should have been the start of a big win, but that was when revenue figures came in. Canadian Solar posted $2.36 billion in revenue. That was up 2.2% from 2022’s second quarter, but it was also less than analyst projections calling for $2.49 billion.
However, it was Canadian Solar’s outlook projections that likely weighed heavily on investors. Management looks for revenue between $1.9 billion and $2.1 billion. Analysts were looking for $2.5 billion. And the full-year 2023 figures would prove no better, with $8.5 billion to $9 billion expected against analyst projections of $9.33 billion. The combination of huge new tariffs and a declining environment for solar purchases as consumer loan rates climb is a bad environment for solar producers.
However, analysts have not given up hope. With three Buy ratings, two Holds, and one Sell, Canadian Solar is considered a Moderate Buy by analyst consensus. Meanwhile, Canadian Solar stock’s average price target of $45.91 also gives it an impressive 70.1% upside potential.
