Canadian Solar (CSIQ) shares surged 18.10% in morning trading on Wednesday, as part of a broader rally in solar energy stocks. The significant upward movement came as investors reacted positively to earnings results from industry peer SolarEdge.
The solar sector witnessed a widespread surge, with several companies experiencing substantial gains. SolarEdge led the pack with a 22% increase, while other notable risers included JinkoSolar (+9%), NEXTracker and Array Technologies (both +6%), and industry giants Enphase Energy and First Solar (both +5%).
The catalyst for this sector-wide rally appears to be SolarEdge's better-than-expected third-quarter earnings report. The company posted earnings per share of $-0.31, surpassing analyst estimates of $-0.41. Additionally, SolarEdge's revenue for the quarter came in at $340.21 million, exceeding the consensus estimate of $330.29 million. This positive surprise from a key player in the solar industry has sparked optimism about the sector's overall health and potential for growth.