LeCanadian

Top Menu

  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

Main Menu

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • Login
  • Archives
  • Les Actualités
  • Advertising
  • Sexy Pages
  • Contact Us

logo

Header Banner

LeCanadian

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating
  • How Canadians can access online casinos through mobile phones

  • Comment gérer un retard de vol ?

  • 5 ways sudoku boosts brain health

  • 10 tips to successfully market your law firm

  • 7 Amazing Gifts for Kids Who Like to Cook

Business
Home›Business›Canadian Solar Shares Plunge as Entire Solar Industry Feels the Burn

Canadian Solar Shares Plunge as Entire Solar Industry Feels the Burn

By admin
November 22, 2016
2072
0
Share:

Shares of Canada’s largest solar panel maker slumped Monday as its prospects for profitability dimmed amid a supply glut that is casting a shadow over the entire industry.

Canadian Solar Inc.’s latest earnings also come as investors worry about the change in political climate under U.S. president-elect Donald Trump, who has signalled he has limited interest in alternative energy.

“In an era of uncertainty in the two biggest markets for solar, both in the U.S. and China, it can create a fundamental mismatch between supply and demand, which is what we’re going through right now,” said Cowen Group managing director and analyst Jeffrey Osborne.

Guelph-based Canadian Solar, the world’s second-largest solar panel manufacturer, reported revenues of US$657.3 million, below the consensus expectation of US$676.4, according to data compiled by Bloomberg. Earnings per share of $0.242 beat the $0.177 expected by analysts.

That, however, was due to the cost of panel components dropping faster than the price of their products, rather than being able to sell panels at higher prices, said Osborne.

Canadian Solar gave fourth-quarter guidance that said gross margins would be lower, between 11 per cent to 16 per cent, leaving investors spooked about its eroding profitability, said Osborne.

Shares of Canadian Solar were down nearly 9 per cent at US$10.68 on the NASDAQ on Monday.

The state of the solar industry as a whole is also giving investors pause.

I don’t see Trump’s showing up on Jan 20 being the kiss of death for the industry, but it certainly creates an air of uncertainty for investor

First Solar, the largest U.S.-based solar panel maker said last Thursday it planned to slash 1,600 jobs — more than one quarter of its total workforce — and stop production at its only American facility, sending shares down 3.9 per cent to US$31.55, the Canadian Press reported.

SunPower Corp. reported quarterly revenues below expectations earlier this month, and said it would aim to cut costs in response to a low-price environment and sluggish demand next year, according to Reuters. Its chief executive Tom Werner told a post-earnings conference call that its average selling price dropped about 25 per cent in the third-quarter.

On Thursday, Canadian Solar chief executive Shawn Qu told an analyst call the company was working to offset these headwinds yet remained confident in the industry’s long-term prospects.

“Near-term volatility in the stock market does not change the fact that renewable energy sources are just scratching the surface in a single digit of worldwide penetration,” he told analysts.

Still, president-elect Trump, who will be inaugurated in January, has vowed to reverse many of President Barack Obama’s clean energy policies, such as the Clean Power Plan.

However, doing so could threaten the 210,000 American jobs in the solar industry, mostly on the installation side, Osborne said. The bulk of those installations are in Republican states, such as Iowa and Texas, he added.

“I don’t see Trump’s showing up on Jan 20 being the kiss of death for the industry, but it certainly creates an air of uncertainty for investors,” said Osborne.

Read More..

Post Views: 2,216
Previous Article

Ottawa Requires Provinces to Phase Out Coal ...

Next Article

Montreal Impact Staves off Toronto FC comeback ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0

Related articles More from author

  • Business

    “Normal” was Gap’s Strength, But the Market Has Changed

    August 22, 2016
    By admin
  • Business

    Why are Pokemon cards again popular all of a sudden?

    July 21, 2021
    By admin
  • Business

    Understanding the Latest Trends in Mobile Application Development

    November 18, 2017
    By admin
  • Business

    Staples Appoints its Canadian President as Head of North American Retail

    July 12, 2016
    By admin
  • Business

    Petrolympic Enters Agreement to Acquire 100% Interest in the Rayon d’Or Gold Property, Near Val d’Or, Quebec

    March 19, 2021
    By admin
  • Business

    New jobs available in rural communities

    January 19, 2021
    By admin

Featured Petition

  • Bell Baker’s John Summers – Stop a Crime Against Humanity – What would his Mother think?
  • John E Summers: Ottawa Lawyer Attacks Motherhood and Civil Rights – Support His Disbarment
  • Stop Ottawa Lawyer John Summers’, Marcella Carby-Samuels’ & David Tenenbaum’s Ab
  • Week
  • Month

Week

Sorry. No data so far.

Month

Sorry. No data so far.

Popular on The Le Canadian

  1. AgoraCosmopolitan
  2. Ottawa Market
  3. Agora Publishing Consortium
  4. Le Journal Canadien
  5. Dominion: Food News
  6. LeCanadian.com
  7. The Ottawa Star
  8. Capitalistocracy.com
  9. Agora Books Author House
  10. First Nations Press
  11. The Etiquette Show
  12. Ontario People's Front





Mark's



Recent Posts

  • How Canadians can access online casinos through mobile phones
  • Comment gérer un retard de vol ?
  • 5 ways sudoku boosts brain health
  • 10 tips to successfully market your law firm
  • 7 Amazing Gifts for Kids Who Like to Cook
  • Make Mortgage Overpayments Work for You
  • Son shares warning for immunocompromised after fully-vaccinated Tampa Bay dad dies from COVID-19
  • Catching Covid-19 after being vaccinated isn’t a myth. It happened to me
  • My COVID Story: “I got COVID after being fully vaccinated”
  • Albertans fully vaccinated for COVID-19 urged to stay cautious during pandemic’s 4th wave

Most Viewed Posts

No Posts found

Visitors

  • Home
  • Business
  • Entertainment
  • Foodie
  • Headline
  • Health
  • Editorials
  • Lifestyle
  • Sports
  • UFO · Exopolitics
  • City
  • Sexuality
  • Dating