Canadian Solar Surges After Posting Record Profit and Sales

Aug 13, 2014 4:22 pm ET

(Updates with closing share price in second paragraph.)

Aug. 13 (Bloomberg) -- Canadian Solar Inc., the third best- performing solar manufacturer in the past 12 months, rose the most in more than two years after reporting record earnings and shipments.

The shares surged 24 percent to $31.03 in New York today, the biggest one-day gain since December 2011. It has increased 163 percent in the past year, behind best-performing REC Solar ASA and SunEdison Inc. on the Bloomberg Intelligence Global Large Solar Index.

Second-quarter net income rose to the highest ever at $55.8 million, or 95 cents a share, the Guelph, Ontario-based company said in a statement today. That beat the 58-cent average of six analysts’ estimates compiled by Bloomberg for profit excluding one-time items.

Shipments hit a record 646 megawatts, more than a May guidance of as much as 630 megawatts.

The company benefited from strong demand in Ontario, the U.S., Japan, and China and is expanding its “high-margin” power-plant business, which contributed about one-third of revenue in the quarter, up from about 27 percent last quarter, Chief Executive Officer Shawn Qu said on a call with analysts today.

For the third quarter, the company expects module shipments to be between 720 megawatts and 750 megawatts, according to today’s statement. For the year, it predicted shipments between 2.5 gigawatts and 2.7 gigawatts and revenue between $2.7 billion and $2.9 billion in a statement in May.