Canadian Solar's Q4 Module Shipments Shine Despite Revenue Dip, Eyes Conservative Q1 Outlook

Canadian Solar Inc CSIQ reported a 14% year-on-year decline in fourth-quarter fiscal 2023 revenue to $1.70 billion, beating the consensus estimate of $1.69 billion. 

The 8% sequential revenue decrease reflects a decline in module average selling price (“ASP”), a decline in solar module shipment volume, and lower project sales.

EPS loss was $(0.02), down from $0.32 last quarter and $1.11 in fourth-quarter 2022. The analyst consensus was $0.01.

Total module shipments reached 8.2 GW, up 26% Y/Y and down by 2% sequentially. 

Gross profit decreased by 39% Y/Y to $213 million. The profit declined 31% sequentially. 

The margin contracted by 420 basis points sequentially to 12.5%, caused by lower module ASPs and an inventory write-down.

Canadian Solar generated $190 million in operating cash flow for the quarter versus $395.4 million last year. The company held $2.94 billion in cash and equivalents as of December 31, 2023.

CSIQ has a $2.6 billion e-STORAGE contracted backlog as of January 31, 2024. 

As of January 31, 2024, Recurrent Energy’s total solar project development pipeline was 27.3 GWp, including 1.9 GWp under construction, 5.5 GWp of backlog, and 19.9 GWp of projects in advanced and early-stage pipelines.

Outlook: For the first quarter, Canadian Solar expects total revenue of $1.20 billion – $1.40 billion, versus a consensus estimate of $1.90 billion, and anticipates a gross margin of 17% – 19%. 

The company expects total module shipments recognized as revenues by CSI Solar of 6.1 GW – 6.4 GW, with total battery energy storage shipments of 1.0 GWh.

For fiscal 2024, CSIQ expects revenue of $8.50 billion – $9.50 billion versus a consensus of $9.57 billion.

The company reiterated that total module shipments were 42 GW – 47 GW and total battery energy storage shipments were 6.0 GWh – 6.5 GWh.

Price Action: CSIQ shares are trading up 1.15% at $19.79 premarket on the last check Thursday.

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