Should You Buy the Post Earnings Plunge in Canadian Solar Stock.jpeg
Renewable energy sources have again entered the spotlight after US president Donald Trump said that his administration would not agree to solar energy projects or wind. Although the demand for electricity grows faster than supply in some parts of the country, the administration appears to be determined to adhere to traditional energy sources. Trump’s words follow the administration’s tightening of federal permits for renewable energy.
In contrast to such a background with tension, the solar energy company (CSIQ) reported the results of the second quarter on August 21, immediately caused CSIQ stock more than 18 % inside the day. Should you consider investing in the company’s drowning after profits?
Solar Canadian Solar, its headquarters in Ontario, Canada, is the leading global provider of solar energy solutions and one of the largest manufacturers in the world for solar PV products (PV). The company was established in 2001, the company designs, develops and manufacturing solar units, as well as providing solar energy storage solutions and storage of batteries.
Canadian solar energy operates advanced manufacturers in many countries. Besides manufacturing, the company actively participates in developing and building solar and batteries storage projects on a large scale. The company currently has the market value of $ 741 million.
CSIQ shares are now reduced. Over the past 52 weeks, the shares have decreased by 10 %. CSIQ also decreased by 0.45 % year to the date (YTD). After reporting the weakening of the second quarter profits and President Trump’s announcement, CSIQ shares decreased by 18.5 % on August 21. The Canadian solar reached the highest level in 52 weeks at $ 19.55 in October 2024, but the shares decreased by more than 43 % of this high.
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CSIQ share is currently in an attractive evaluation. Its price is 0.12 times sales, and it is much lower than the average industry.
On August 21, Canadian Solar informed its results in the second quarter of 2025. The total net revenue increased by 3.6 % from the previous period to $ 1.69 billion. However, this figure is less than estimated the consensus of the analysts in Wall Street of $ 1.92 billion. At the heart of this modest growth of revenue, the company’s increasing sales of battery power storage systems and solar energy units, while storage systems turned into the second half of the year, as well as delay in sales of specific projects.
On the other hand, the total margin increased from 17.2 % in Q2 2024 to 29.8 % in Q2 2025, driven by a mixture higher than North American unit shipments and solid storage sizes.
Modifying the modified company to the modified bottom compared to the previous year period. Its modified loss of one share was at $ 0.53 per quarter, while Solar Canadian company has reported the profitability of the amended stock about $ 0.02 in the same period last year. The Wall Street analysts expected $ 0.76 per share.
For the third quarter, the company expects the total revenue to range from $ 1.3 billion to $ 1.5 billion. The total margin is expected to be 14 % to 16 %. Throughout the full year of 2025, Canadian Solar expects that total revenues will range from $ 5.6 billion to $ 6.3 billion, down from the previous range from $ 6.1 billion to $ 7.1 billion.
The Wall Street analysts have mixed expectations about the Canadian Solar Power Prospects. For the current year, the company is expected to expand the loss of one share by 20 % from the previous year to $ 1.74. On the other hand, next year, the loss per share is expected to be narrowed by 44 % year on an annual basis to $ 0.97.
Wall Street analyzers have become careful about CSIQ inventory after Q2 results. Recently, Citi analysts have reduced the target price of the company’s share from $ 12.50 to $ 11, while maintaining a “neutral” rating. CITI reduced the target price after the company has missed the estimates and reduced its financial guidelines in the fiscal year 2025. The company’s analysts also expressed concern about maintaining Canadian FEOC’s compliance.
The Mizuho Maheep Mandloi analyst also reduced the target price on Canadian solar energy from $ 17 to $ 15. However, Mandloi kept classifying “superior performance” on shares, expressing the opinion that the company’s Q2 results were mixed due to the confluence of the factors.
Wall Street analyzes warn of CSIQ stock, giving him the “Hold” classification in general. Among 11 arrows analysts, he gives him four “strong purchase” rating, three cautions with “Comment” classification, and four “Strong Selling” classification. The purpose of the consensus price of $ 13.50 is 22 % of the upward trend of current levels. The goal of the high price on the street is $ 23, means 107 % of the ups off here.
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Although clean energy initiatives gaining traction, Trump’s recent words highlight the fact that support for renewable energy sources may be withdrawn. Moreover, Canadian Solar Q2 Q2 results, and the company’s reduction in its outlook creates more uncertainty. Therefore, it may be wise to watch CSIQ stocks now.
On the date of publication, Anushka Dutta did not have positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article are only for media purposes. This article was originally published on Barchart.com
