Canadian Solar (NASDAQ:CSIQ) Shares Gap Down on Disappointing Earnings

Canadian Solar Inc. (NASDAQ:CSIQ)’s share price gapped down prior to trading on Thursday following a dissappointing earnings announcement. The stock had previously closed at $18.52, but opened at $13.80. Canadian Solar shares last traded at $13.1950, with a volume of 4,239,022 shares.

The solar energy provider reported ($1.66) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.10) by ($0.56). The business had revenue of $1.22 billion for the quarter, compared to analysts’ expectations of $1.37 billion. Canadian Solar had a net margin of 0.27% and a negative return on equity of 5.28%. The company’s revenue for the quarter was down 20.0% compared to the same quarter last year. During the same period in the prior year, the business earned $0.48 earnings per share.

Canadian Solar News Roundup

Here are the key news stories impacting Canadian Solar this week:

• Positive Sentiment: Won a 500 MW battery storage deal with a U.S. utility, which adds contracted/near-term project backlog and diversifies revenue beyond modules. Canadian Solar snags 500 MW battery storage deal with U.S. utility
• Positive Sentiment: Full?year 2025 shipment highlights: 24.3 GW shipped globally and a record 8.1 GW to the U.S., showing execution and scale that support longer?term growth prospects. Canadian Solar Reports Fourth Quarter and Full Year 2025 Results
• Positive Sentiment: Mizuho upgraded the stock to Neutral, which could limit further downside from some institutional investors. Mizuho Upgrades Canadian Solar (NASDAQ:CSIQ) to Neutral
• Neutral Sentiment: Pre?earnings analyst preview coverage outlined metrics to watch for Q4, useful context but not a direct catalyst. Gear Up for Canadian Solar (CSIQ) Q4 Earnings
• Negative Sentiment: Main catalyst for the decline — Q4 revenue missed and Q1 revenue guidance came in below estimates, prompting the selloff. Canadian Solar Stock Falls After Q4 Revenue Miss, Weak Q1 Outlook
• Negative Sentiment: Market reaction highlighted by headlines that the stock fell ~13% after disappointing Q4 results and a soft Q1 outlook, amplifying downward pressure. Canadian Solar stock tumbles 13% on disappointing Q4 results, soft Q1 outlook
• Negative Sentiment: Q4 EPS missed materially (loss of $1.66 vs. $1.10 expected) and was worse than last year’s loss, underscoring margin pressure and near?term profitability concerns. Canadian Solar (CSIQ) Reports Q4 Loss, Lags Revenue Estimates
• Negative Sentiment: Press/earnings snapshots and company materials confirm revenue decline (20% YoY) and detailed Q&A on the conference call may have reinforced investor concerns. Canadian Solar: Q4 Earnings Snapshot

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on CSIQ shares. UBS Group boosted their target price on shares of Canadian Solar from $15.00 to $37.00 and gave the company a “buy” rating in a research note on Wednesday, November 19th. Daiwa Securities Group upgraded Canadian Solar from a “neutral” rating to an “outperform” rating and set a $30.00 price objective on the stock in a research note on Tuesday, December 2nd. Mizuho raised Canadian Solar from an “underperform” rating to a “neutral” rating and decreased their target price for the stock from $21.00 to $19.00 in a research report on Tuesday. Finally, Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Canadian Solar in a research report on Monday, December 29th. Two investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and four have assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Reduce” and a consensus target price of $19.63.

Hedge Funds Weigh In On Canadian Solar

A number of institutional investors have recently added to or reduced their stakes in CSIQ. Zurcher Kantonalbank Zurich Cantonalbank boosted its position in shares of Canadian Solar by 7.0% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 4,796 shares of the solar energy provider’s stock valued at $63,000 after acquiring an additional 312 shares during the last quarter. Clear Harbor Asset Management LLC increased its position in shares of Canadian Solar by 4.7% in the third quarter. Clear Harbor Asset Management LLC now owns 18,075 shares of the solar energy provider’s stock worth $236,000 after purchasing an additional 805 shares during the last quarter. China Universal Asset Management Co. Ltd. bought a new position in shares of Canadian Solar in the fourth quarter worth approximately $48,000. LPL Financial LLC raised its stake in Canadian Solar by 16.7% in the fourth quarter. LPL Financial LLC now owns 15,525 shares of the solar energy provider’s stock valued at $369,000 after purchasing an additional 2,219 shares in the last quarter. Finally, CANADA LIFE ASSURANCE Co raised its stake in Canadian Solar by 38.6% in the second quarter. CANADA LIFE ASSURANCE Co now owns 8,094 shares of the solar energy provider’s stock valued at $89,000 after purchasing an additional 2,254 shares in the last quarter. 52.36% of the stock is currently owned by institutional investors.

Canadian Solar Trading Down 29.0%

The company has a quick ratio of 0.86, a current ratio of 1.07 and a debt-to-equity ratio of 0.93. The firm has a market capitalization of $880.05 million, a P/E ratio of -36.81 and a beta of 1.31. The firm’s 50-day simple moving average is $19.67 and its 200-day simple moving average is $19.61.

About Canadian Solar

Canadian Solar Inc (NASDAQ: CSIQ) is a global renewable energy company that specializes in the design, development and manufacturing of solar photovoltaic (PV) modules and system solutions. Founded in 2001 and headquartered in Guelph, Ontario, the company has grown to become one of the world’s largest solar module suppliers. Canadian Solar offers a comprehensive portfolio of products, including mono- and multi-crystalline solar cells and modules, as well as advanced energy storage and system integration solutions tailored for residential, commercial and utility-scale applications.

In addition to manufacturing solar components, Canadian Solar provides end-to-end services encompassing project development, engineering, procurement and construction (EPC), as well as operations and maintenance.