What happened
Investors sold out of Canadian Solar(NASDAQ: CSIQ) stock on Tuesday following the release of its second-quarter results. While the company trounced the collective analyst-profitability estimate, the story was quite different on the top line -- both in trailing and future terms. Canadian Solar's shares closed the day nearly 12% lower in price in marked contrast to the nearly 0.7% increase of the bellwether S&P 500 index.
So what
This, despite the fact that Canadian Solar actually posted some solid growth figures. For example, its net revenue rose by 39% year over year to hit $2.4 billion, coming in on the low end of its guidance. That was on the back of a 62% improvement in solar-module shipments, of which the company delivered the equivalent of 8.2 gigawatts.
Meanwhile, non-GAAP net income also saw quite the growth spurt; it doubled and then some to $170 million ($2.39 per share) from the Q2 2022 result of $84 million.
Despite those rising numbers, the quarter was a mixed one for Canadian Solar. While it handily beat the consensus-analyst estimate of $1.52 for per-share profitability, it fell short of those pundits' $2.49 billion forecast for net revenue.
Now what
Canadian Solar also provided guidance for both its current (third) quarter and for the entirety of 2023. For the former period, it's anticipating revenue will come in at $1.9 billion to $2.1 billion. However, on average, prognosticators are modeling $2.5 million. The company also reiterated its previous forecast of $8.5 billion to $9.0 billion in revenue for the full year.
10 stocks we like better than Canadian Solar
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now... and Canadian Solar wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of August 21, 2023
Eric Volkman 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.
