Volume Spike Investor

Canadian Solar Inc. (NASDAQ: CSIQ) is seeing a battering this morning after its earnings are disappointing to the solar bulls.  The company posted $0.36 EPS (after $10+M charges) on a 24% revenue gain to $212.6M versus estimates from First Call of $0.47 and $206.8M (see below for better comparison).

The company sees Q3 revenues of $245 to $255M versus $247.63M estimates and sees 2008 revenues at $850 to $970M versus estimates of $908.9M.  Further out, CS is reiterating 2009 shipment targets of 500 to 550MW including about 400 MW of regular solar modules and 100 - 150 MW of its e- Modules.

While the non-GAAP number on an adjusted EPS basis was $0.78 EPS, traders want more clean numbers and wanted to see more.  Hey, greedy kids are greedy kids and you can’t ever satiate some of those appetites.

Shares are indicated down over 7% at $28.50 on more than 400,000 shares as of $9:06 AM EST.  With a $6.50 to $51.80 trading range over the last year, volatility is this stock’s middle name.  August and September stock options were also active into this event, which could further add to the stock’s volatility today.

Jon C. Ogg
August 13, 2008