Boston, MA 05/09/2014 (wallstreetpr) – Canadian Solar Inc.(NASDAQ:CSIQ) on Wednesday released “selective” initial results for the quarter. This comes as a surprise as the company is due to report its first-quarter results within the next 10 days. Some analysts are of the opinion that this action shows that the news may not be good.
The Ontario based Canadian Solar Inc.(NASDAQ:CSIQ) forecasted shipments of 470 to 490 megawatts of solar modules during release of earnings in early March. The forecasted revenues were in the range of $415 million to $430 million and gross margins of14% to 16% were expected. But the selective release of results has put things into perspective. The company will ship 490 to 500 megawatts of solar modules. The revenue will touch a new range between $460 million to $470 million, although gross margins are at a low, hovering in the range of 14% to 15%.
This definitely marks an improvement when compared to the March consensus estimated revenues worth $517.78 million for the first-quarter. The Company’s share value had seen an increase of more than 1,000% in the past one year till the month of March.But on Tuesday, the stock shows an appreciation of just 400% for the past 12 months which is just a sharp fall compared to March. The year-to-date value showed 21% depreciation.
When the markets opened on Wednesday, Canadian Solar Inc.(NASDAQ:CSIQ)’s shares showed an initial recovery by reaching 4.5% and later to gain of about 7% .But the shares ended at a loss of about 3%.During the afternoon hour, share value was up by 1.3%, at $27.33.The 52-week range oscillated between $5.18 to $44.50.
Canadian Solar Inc.(NASDAQ:CSIQ)’s selective releasing of results was a ploy to up the share value and to recover at least some part of the 30% share value which was lost after March results were announced. The plan did not seem to work though.
