Canadian Solar to beat 2015 expectations on stronger Q4

Canadian Solar will beat previous expectations for sales and shipments when it announces its 2015 financial results next month, the PV group said today.

Canadian Solar – based in Toronto but carrying out most production in China – now expects to post 2015 shipments of up to 4.68GW and revenues as high as $3.4bn, exceeding previously-guided maximums of 4.2GW and $3.33bn.

The revised full-year expectations follow a better than foreseen fourth quarter for the PV module manufacturer and developer, which is now firmly established in the top rank of China’s solar giants behind market-leader Trina Solar.

Gross margin for Q4 is expected to be above the high end of previous guidance of 13% to 15%.

CEO Shawn Qu said: "Our stronger than expected results reflect continued health and robust demand in the global solar market, combined with Canadian Solar's Tier 1 position, strong bankability, increased sales in higher ASP regions and the benefit of favorable currency moves.”

The increased guidance sent Canadian Solar’s shares up by more than 8% to $17.70 in pre-market trading on New York’s Nasdaq exchange.

The company also today suspended plans to raise up to $100m via a share-sale programme, citing conditions the financial markets.

The at-the-market common share sale was announced on 4 January, when Canadian Solar’s stock price was nudging $28, to raise cash for general corporate purposes, possibly including project development.

Since then the company’s shares have dipped sharply amid a general market fall and continuing pressure on solar stocks.

The company has so far raised $13.6m before expenses and said the programme “will remain suspended as long as current market conditions continue”.