Canadian Solar on Tuesday reported lower profit and revenue in the third quarter as higher interest rates soften demand for its products.
The New York-listed Canadian solar PV modules manufacturer posted a lower net income of $21.9 million, or 32 cents a share, down from $78.5 million, or $1.12 a share, at this time a year ago.
Analysts were expecting a decline in the quarter, but less precipitously to 82 cents a share, according to FactSet.
Revenue fell to $1.85 billion from $1.93 billion, missing analyst expectations of a slight rise to $2.03 billion. The company said the decline reflects lower project sales and lower module average selling price.
In the period Canadian Solar saw a 39% year-over-year increase in solar module shipments to 8.3 gigawatts.
Meanwhile, the company had a $2.6 billion e-STORAGE contracted backlog as of Nov. 14, of which about half are expected deliveries for next year that are likely to improve cost environment, it said.
Chairman and Chief Executive Shawn Qu said the company continued to progress on its capacity diversification in the quarter, despite lower-than-expected market demand growth due to the higher interest rate environment.