GUELPH, Ontario, Jan. 12, 2018 /PRNewswire/ — Canadian Solar Inc. (“Canadian Solar” or the “Company”) (NASDAQ: CSIQ), one of the world’s largest solar power companies, today updated its guidance for the fourth quarter and full year 2017 in part to reflect the timing of certain utility-scale solar project sales. The updated guidance is subject to adjustments based upon completion of the Company’s internal review process. Final reported results could differ materially from the estimates provided below.
In the guidance provided in its press release dated November 9, 2017, the Company noted that in September and October 2017, it had entered into definitive agreements with two buyers to sell a portfolio of six solar power projects in California, totaling 703 MWp. The parties hoped to close the transactions in the fourth quarter of 2017 or the first quarter of 2018, depending on the timing of receipt of the required governmental approvals. These transactions were not completed in 2017 and have not yet received the required government approvals. The Company will update the timing for the completion of these transactions once the parties receive the required government approvals.
As a result of the delay in completing the transactions, the Company now expects its total revenue for the fourth quarter of 2017 to be in the range of $1.04 billion to $1.08 billion, compared to $1.77 billion to $1.81 billion guided previously.
Meanwhile, Canadian Solar updates its solar module shipment guidance for the fourth quarter of 2017 to be in the range of approximately 1,720 MW to 1,820 MW, compared to 1,650 MW to 1,750 MW guided previously. Gross margin for the fourth quarter of 2017 is now expected to be in the range of 16.5% to 18.5%, compared to 10.5% to 12.5% previously guided. The sales of the portfolio of six solar power projects in California have low margins and, therefore, had lowered the gross margin estimate in the previous guidance. On the other hand, in the fourth quarter of 2017, the Company sold a portfolio of Japanese solar projects to Canadian Solar Infrastructure Fund, Inc., which went public in October 2017, as well as sold certain other solar projects in the U.S. and other countries. These transactions had healthy margins. The new guidance reflected the blended gross margin of Canadian Solar’s module and solutions businesses, as well as these project sales. The Company will provide more details in the fourth quarter 2017 business