Canadian Solar Misses Q1 Revenue Amid Challenging Operating Environment

Canadian Solar Inc CSIQ reported first-quarter FY22 revenue growth of 15% year-on-year to $1.25 billion, missing the consensus of $1.31 billion. Higher solar shipment volumes and ASP and a significant increase in the battery storage solutions business drove the growth.
Solar module shipments of 3.63 GW, up 42% Y/Y, were in line with its 3.6 GW - 3.8 GW guidance.
Margin: The gross margin expanded 480 bps to 14.5%, in line with the company guidance of 14.5% - 15.5%.
EPS of $0.14 beat the consensus loss of $(0.13).
Canadian Solar generated $159 million in operating cash flow and held $1.7 billion in cash and equivalents.
Dr. Shawn Qu, Chairman, and CEO, commented, "First quarter 2022 shipments, revenue, and gross margin all came in as expected, despite the challenging operating environment."
Outlook: Canadian Solar sees Q2 revenue of $2.2 billion - $2.3 billion, above the consensus of $1.75 billion.
Canadian Solar reiterated the FY22 revenue guidance of $7.0 billion - $7.5 billion versus the consensus of $7.23 billion.
Price Action: CSIQ shares traded lower by 0.58% at $28.97 in the premarket session on the last check Tuesday.