Canadian Solar Inc. (CSIQ) just hit a new 52-week high on strong Q3 results and rising estimates.
Company Description
Canadian Solar Inc. is one of the worlds largest solar module producers, specializing in wafers, solar cells, solar modules and solar systems. The company was founded in 2001 and has a market cap of $1.38 billion.
Shares of CSIQ have been hot for most of the year, recently hitting a new 52-week high just shy of $30 after surging above a key level of resistance at $24 after reporting better than expected Q3 results on Nov 17.
Third-Quarter Results
Revenue was down 16% from last year to $213 million on the weak economy, but earnings came in strong at 69 cents per share, 17 cents ahead of the Zacks Consensus Estimate.
The company noted that its shipments increased to 103 megawatts from 60 megawatts last year, as European sales were up 179% from Q2. Canadian Solar said it expects shipments in 2010 to be between 600 and 700 megawatts on strong international demand from countries like Germany, Spain, South Korea, China and Japan.
Estimates
Estimates jumped higher on Canadian Solar’s good quarter, pushing the current year up 22 cents to $1.60. The next-year estimate is up 34 cents in the same period to $1.89, a bullish 18% growth projection.
Based on the current-year estimate, shares of CSIQ trade with a forward P/E of 17.5X, in line with the overall market.
The Chart
Shares of CSIQ surged on news of the solid Q3 results, hitting a new 52-week high at $29.95. Take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Surprise Trader Service. Zacks Investment Research
