Canadian Solar Stock Tumbles Ahead of Q3 Earnings: Retail Investors Stay On The Sidelines
By Stocktwits Inc | First Published Dec 5, 2024, 1:17 AM ISTRetail investors are waiting on management commentary around potential tariffs and their impact on the company’s already falling revenue.
Canadian Solar stock tumbled over 3% in mid-day trading on Wednesday ahead of the company’s third-quarter results.
The company’s stock price is approximately $12.14, reflecting a significant decline from its 52-week high of $26.85.
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The renewable energy company is grappling with falling revenues, narrowing margins, rising operating expenses, and widening losses, compounded by uncertainty surrounding its guidance amidst geopolitical tensions.
Last quarter, the company missed earnings per share (EPS) by $0.11, which was followed by a 9.82% increase in the share price the next day.
This time, Wall Street is expecting a loss of $0.21 per share on revenue of $1.71 billion.
The company’s manufacturing footprint has come under scrutiny following President-elect Donald Trump’s pledge to impose a 25% tariff on goods imported from Canada.
While Canadian Solar maintains U.S. manufacturing capacity, which could help mitigate the impact of new trade policies, much of its operations are based in Asia, particularly China, where it could face a 35% U.S. tariff.
China and the U.S. together contribute nearly half of the company’s revenue.
Analysts have also expressed concerns about a preliminary 78% anti-dumping (AD) tariff on solar products from Thailand, where Canadian Solar has significant production. These potential tariffs could hinder the company’s ability to compete effectively in the U.S. market.
Despite challenges in the solar module sector, Canadian Solar’s energy storage business is a bright spot.
The company’s energy storage segment has experienced significant growth, with a backlog of about $2.6 billion at the end of the June quarter. Its subsidiary, Recurrent Energy, has expanded its development pipeline to include 27 GW of solar power and 63 GWh of battery energy storage.
Retail sentiment around Canadian Solar remains in the ‘neutral’ territory but there has been an uptick in chatter to ‘high’ ahead of the company’s earnings results.
Canadian Solar’s stock has dipped 53% so far this year.
For updates and corrections email newsroom[at]stocktwits[dot]com.<
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