Canadian Solar Inc., a solar-panel company with manufacturing operations in China, fell after reporting a second-quarter loss that exceeded analysts’ estimates.
Canadian Solar, based in Kitchener, Ontario, dropped 11 percent to $2.70 at the close in New York. Earlier, the shares declined as much as 16 percent, the biggest intraday fall since Aug. 8, 2011.
The net loss was $25.5 million, or 59 cents a share, compared with net income of $7.1 million, or 16 cents, a year earlier, the company said in a statement today. It attributed the drop to a decline in panel prices. Analysts expected a loss of 29 cents, the average of three estimates compiled by Bloomberg.
The company reiterated its forecast for shipment of as much as 2 gigawatts of panels this year. “The level of uncertainty in the solar market and macro economy has increased the risk to our guidance,” Chairman and Chief Executive Officer Shawn Qu said on a conference call with investors today.
“They’re really pushing their credibility by maintaining full-year shipment guidance when they just had a miss,” said Mark Bachman, an analyst at Boston-based Avian Securities LLC who has a buy rating on the shares. Canadian Solar will have to ship more than 635 megawatts in the fourth quarter to meet the low-end of their guidance, he said. “That’s going to be a real challenge.”