Canadian Solar, a leading solar technology and renewable energy company, saw its shares plummet to a 15-month low following the release of its second-quarter earnings report. Although the company reported higher earnings for the quarter, it also decreased its revenue guidance for 2023.
As a result, the stock price dropped by 12% to $27.10, reaching its lowest point since May 2022 when it briefly fell to $26.77. Since the beginning of the year, shares have experienced a decline of approximately 13%.
In terms of financials, Canadian Solar revealed a 2% increase in revenue, reaching $2.36 billion. However, the company revised its year-end revenue forecast to be in the range of $8.5 billion to $9 billion, down from its previous outlook of $9 billion to $9.5 billion.
On a positive note, earnings per share rose significantly from $1.07 to $2.39.
The decline in market prices during the quarter was cited as the primary reason for the company’s lower revenue outlook. In response, Chairman and Chief Executive Shawn Qu stated, “We expect margins to rebalance throughout the year as we prioritize premium markets and segments while reducing non-vertically integrated solar module shipments.”
Canadian Solar remains committed to solidifying its leadership position in these premium markets and segments.
