Canadian Solar Inc. (CSIQ – Free Report) reported fourth-quarter 2017 earnings of $1.01 per share, missing the Zacks Consensus Estimate of $1.03 by 2%. The company had reported a loss of 23 cents per share in the year-ago period.

Canadian Solar Inc. Price, Consensus and EPS Surprise

Canadian Solar Inc. Price, Consensus and EPS Surprise | Canadian Solar Inc. Quote

Total Revenues

Solar cell manufacturer, Canadian Solar posted total revenues of $1.1 billion in the quarter, which also missed the Zacks Consensus Estimate of $1.5 billion by 24.8%. The top line was however up a solid 65.9% from $668.4 million reported in fourth-quarter 2016.

Operational Update

Solar module shipments in the quarter totaled 1,831 megawatts (MW), up 13.6%, from the year-ago level of 1,612 MW. The figure exceeded management’s guidance range of 1,720-1,820 MW.

Gross profit was $218.6 million, up 346.1%, from the year-ago level of $49 million. Gross margin was 19.7% in the quarter compared with 7.3% in the prior-year quarter.

Total operating expenses were $88.4 million, up 45.6% year over year. Selling expenses totaled $39.9 million, down 6.6% year over year. General and administrative expenses were $69.7 million, up 10.8% year over year. Research and development expenses were $8.6 million compared with $3.2 million a year ago.

Interest expenses were $33.5 million, up from $22.9 million recorded a year ago.

Financial Update

As of Dec 31, 2017, cash and cash equivalents were $561.7 million, up from $511 million as of Dec 31, 2016.

Long-term debt as of Dec 31, 2017, was $404.3 million, down from $493.5 million as of Dec 31, 2016.

Guidance

For first-quarter 2018, Canadian Solar expects shipments in the range of 1.30-1.35 gigawatts (GW). Total revenues are projected in the range of $1.37-$1.40 billion along with gross margin in the 10-12% range.

Canadian Solar’s total module shipments in 2018 are anticipated to be in the range of 6.6-7.1 GW. Total revenues are expected to be in the range of $4.4-$4.6 billion.