Canadian Solar Inc. (NASDAQ:CSIQ) reported third-quarter financial results that topped estimates, all but affirming the company’s growth metrics and long term prospects. Being one of the key players in the burgeoning solar energy markets, the company remains well-positioned to grow due to the rising demand for clean energy.
South East Asia Opportunity
While the company has made a good fortune in North America, the South East Asian region presents tremendous opportunities for the company. Electricity consumption in the region is poised to more than double by 2040, providing ample scope for the solar energy market.
Canadian Solar has already commenced the construction of a 5MWp commercial and industrial rooftop solar project in Malaysia. Once complete, the project is poised to generate 6,700MWh of solar electricity for 25 years. While Malaysia has set a target for increasing its renewable energy from 6% to 25% of the company remains well-positioned to benefit from the growing demand.
In addition to South East Asia, Canadian Solar has also set sights on the Latin America solar energy market, having secured two projects in a private auction for a total of 862MWp in solar power in Brazil. The company is to supply solar energy from a 170MWp cluster of projects in Brazil.
Earnings Beat
The pursuit of growth opportunities in Southeast Asia should help strengthen the Canadian Solar revenue base that has been growing amid the growing demand for solar energy in North America. The company reported net earnings of 15 cents a share against an expected net loss of 4 cents. While earnings deteriorated from a year ago, the same can be attributed to higher revenue costs as the company continued to expand its footprint.
Net revenue climbed to $914.4 million above guidance of between $840 and $860 million and above the consensus estimate of $861 million. During the quarter, solar module shipments increased 33% to 3,169, helped by strong global demand growth.
For the fourth quarter, Canadian Solar expects solar shipments of 2.9-3.0Gw. Revenues are projected to increase by between 8 and 10% translating to $980 to 1,015 million.