Overview

* Canadian Solar ( CSIQ ) Q2 revenue of $1.7 bln missed analyst expectations, per LSEG data

* Adjusted EPS for Q2 was a loss of $0.53, missing estimates, per LSEG data

* Gross margin of 29.8% exceeded guidance, driven by North American module shipments

Outlook

* Company expects demand to normalize after surge in China installations in H1

* Company expects Q3 revenue between $1.3 bln and $1.5 bln

* Canadian Solar ( CSIQ ) sees Q3 gross margin at 14%-16%

* Company forecasts full-year revenue of $5.6 bln to $6.3 bln

* Canadian Solar ( CSIQ ) anticipates full-year module shipments of 25 GW to 27 GW

Result Drivers

* H2 SHIFT - Revenue came in below company guidance due to storage shipments shifting to second half and delays in certain project sales

* GROSS MARGIN - Exceeded expectations due to higher North American module shipments and robust storage volumes

* SHIPMENT INCREASE - Solar module shipments rose 14% qoq to 7.9 GW, near the high end of company guidance

* STORAGE PERFORMANCE - e-STORAGE achieved strong performance despite tariff headwinds, contributing to results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $1.70 $1.95

Revenue bln bln (7

Analysts

)

Q2 Miss -$0.53 $1.61 (7

Adjusted Analysts

EPS )

Q2 Net $7 mln

Income

Q2 Gross $505 mln

Profit

Q2 $378 mln

Operatin

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 3 "hold" and 3 "sell" or "strong sell"

* The average consensus recommendation for the renewable energy equipment & services peer group is "buy."

* Wall Street's median 12-month price target for Canadian Solar Inc ( CSIQ ) is $12.50, about 2% below its August 20 closing price of $12.75

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)