The analysis proved the Canadian Solar solar company’s long-term viability
Canadian Solar Inc. (CSIQ) has released a favorable first-quarter report for 2022. The company’s revenues are constantly expanding, and investors have responded favourably to the news. At the May 24 auction, CSIQ shares rose 5.08 percent to $30.62. Canadian Solar’s sales increased 15% year over year to $1.25 billion in the quarter ending May 31. Solar module deliveries totaled 3.63 GW (+42%), with a 14.5 percent gross margin. The company made $9 million in profit, or $0.14 per share.
Despite the ongoing supply chain issues, Canadian Solar’s management claims that the company was able to meet its shipping volume objectives. The profitability of Canadian Solar is being harmed by increased polysilicon prices, which are the primary raw ingredient for solar panels. As a result, the firm has raised its product prices and is taking steps to lower the cost of processing raw materials. As a result, the corporation’s gross margin could increase by 161 percent year over year.
Most significantly, the firm is continuing to update its manufacturing processes in order to enhance the output of next generation solar modules in the future. Canadian Solar is also working to commercialize its unique battery technology for residential usage and major utility projects. With estimates for the entire year of 2022, Canadian Solar’s management is still cautious. The demand for solar energy in the Americas remained strong in the first quarter.
In the long run, the company anticipates positive demand trends. Furthermore, Canadian Solar believes that the two-year negative time for solar energy has passed, and that the firm will be able to tap into new fast-growing industries, among other things.
