Wall Street has been struggling to find a new comfort level in the midst of recent stresses to the banking system. Yet even with echoes of the financial crisis of 2008 and 2009 in their ears, market participants are working to get past their fears, and they hope that steps taken to restore confidence will work. The Dow Jones Industrial Average (DJINDICES: ^DJI) opened Tuesday morning higher by 300 points, or about 1%, showing the market's belief in a rebound.
There aren't many companies issuing earnings reports at this time of the quarter, but a couple of companies did see their shares rise sharply after releasing their financial results. Canadian Solar (NASDAQ: CSIQ) has been a key player in the solar panel space for a long time, while On Holding (NYSE: ONON) is a relatively new company in the athletic footwear business. Below, you'll see how both companies did and why their shares are rising in response.
Canadian Solar heats up
Shares of Canadian Solar opened higher by 11% on Tuesday morning. The solar company reported fourth-quarter financial results that showed huge demand for its products.
Canadian Solar's sales for the fourth quarter jumped 29% year over year to $1.97 billion. That was well above the $1.8 billion to $1.9 billion that the solar company had expected in its previous guidance. Investors were also pleased with the bottom line, as Canadian Solar posted earnings of $1.11 per share. That was close to triple the $0.39 per share that it earned in the fourth quarter of 2021.
Demand was clearly strong, as Canadian Solar reported a 68% increase in solar module shipments compared to the same period of 2021. At 6.4 gigawatts, Canadian Solar's shipments were above previous guidance of between 6 and 6.3 gigawatts. For the full year in 2022, the company shipped 21.2 gigawatts of solar modules, up 45% from 2021.
Canadian Solar has become a massive business, with 25 gigawatts of solar projects and 47 gigawatt-hours of battery storage projects giving it one of the biggest pipelines of future business in the industry. Yet with the solar stock still down over the past two years, some investors think now is a great time to look at Canadian Solar for the long run.
On is winning the race
Shares of On Holding did even better, jumping 25% at the open on Tuesday morning. The Swiss athletic shoe specialist continued its impressive growth story, posting fourth-quarter results that closed a strong year for the business.
On Holding reported quarterly revenue of 367 million Swiss francs, up 92% year over year. That closed a year in which On's sales topped the 1 billion Swiss franc mark for the first time, posting 69% growth from 2021's final figures. Moreover, On made money in 2022, as net income came in at 58 million Swiss francs. That reversed a loss of 170 million Swiss francs in 2021.
On has high hopes for the coming year. The company expects first-quarter sales growth of 61%, and it's aiming to see revenue reach at least 1.7 billion Swiss francs for the full 2023 year. That would represent a slowdown in the growth rate to 39%, but investors didn't seem worried with that aspect of its guidance.
On's stock has been publicly traded for less than two years, and already, the Swiss company is making a splash in the athletic apparel and footwear industry. Many investors see more good things ahead from On, and it'll be interesting to see if 2023 goes as well as the company believes it will.
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Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.