Canadian Solar Inc. has released updated guidance for its Q4/2022 financials now expecting to exceed its previous revenue and solar module shipment forecast for the quarter, while reaffirming total module shipment guidance of 30 GW to 35 GW for 2023.
The Canada headquartered Chinese manufacturer expects to report Q4 total module shipments by its subsidiary CSI Solar to settle at around 6.4 GW, with revenues of approximately $1.97 billion. Gross margin for the quarter is anticipated as 17.7%. Management also guides for its net income to be around $70 million.
Previously, the management guided for Q4 shipments to range between 6.0 GW to 6.3 GW and revenues between $1.8 billion and $1.9 billion with gross margin of 16% to 18% (see Canadian Solar Shipped 6 GW Solar Modules In Q3/2022).
While Canadian Solar has reiterated its annual total module shipment guidance of 30 GW to 35 GW for 2023, in Q1/2023 it guides for CSI Solar module shipments to be between 5.9 GW to 6.2 GW citing usual seasonality.
For Q1/2023, it expects total revenues to range between $1.6 billion to $1.8 billion, and gross margin of 18% to 20%.
While the management has not stated any specific reason for this upward revision in guidance for Q4, one can assume it may have something to do with module costs coming down as a result of polysilicon supply easing up.
Actual reasons will be known on March 21, 2023 when the company plans to announce its Q4/2022 and full year 2022 financial results.
In January 2023, Canadian Solar announced its vertical integrated production capacity expansion to reach 50 GW total annual capacity for cells and modules each by 2023-end (see Canadian Solar Updates Production Capacity Expansion Plans).