* Estimates 4th-qtr revenue of $510-$520 mln vs est. $556
* Expects to post fourth-quarter profit
* Shares down 4 pct
By Swetha Gopinath
Feb 11 Canadian Solar Inc's
fourth-quarter revenue estimate missed analysts' estimates as
weak panel prices more than offset a rise in demand, sending its
shares down 4 percent.
The company, most of whose manufacturing operations are in
China, estimated that it shipped between 605 megawatt (MW) and
620 MW of solar panels in the quarter, higher than its target of
Still, its fourth-quarter revenue estimate of $510
million-$520 million came in below the average analyst estimate
of $556 million, according to Thomson Reuters I/B/E/S.
Solar companies are seeing increased demand for panels and
other products, primarily in China and Japan, but prices remain
depressed as excess supplies continue to flood the market.
To cut its dependence on the hyper-competitive business of
selling panels, Canadian Solar has made a big push into building
solar power plants, a high-margin business.
The Guelph, Ontario-based company said on Tuesday it expects
to have turned in a profit for 2013, its first annual profit
The company, however, warned that its profitability could be
hurt if it received an unfavorable ruling in a case over a
contract dispute with LDK Solar Co Ltd.
The dispute stems from a wafer supply contract the companies
entered into in October 2007 and June 2008, and subsequently
Canadian Solar also estimated it would post a profit in the
fourth quarter ended Dec. 31, its second straight quarterly
profit after nine quarters of losses.
The company estimated quarterly gross margins of 16-18
percent. That is higher than its prior forecast of 13-15
percent, which did not include the sale of a solar project in
Raymond James analyst Pavel Molchanov said the gross margin
estimate was below the 20.4 percent Canadian Solar reported in
the third quarter.
"So it's not really an improvement," Molchanov said.
Canadian Solar also said it was offering 2.6 million common
shares and $100 million in convertible senior notes due 2019.
Solar panel makers are returning to capital markets for the
first time in more than two years in an attempt to raise funds
to pay off billions of dollars of debt.
Canadian Solar shares were down 4 percent at $37.56 in
morning trading on the Nasdaq.