Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Shares of Chinese photovoltaic (PV) manufacturer ReneSola Ltd. (SOL - Analyst Report) surged as much as 19% on Jul 16 on New York Stock Exchange following the company’s increased guidance for the second quarter as well as full year 2013.

The company expects total revenue for the second quarter in the range of $365 million to $375 million, compared with a May forecast of $310 million to $330 million. Shipments are expected in the band of 760 megawatt (MW) to 770 MW, up from the previous expectation of 700 MW to 720 MW. Specifically, the company’s solar module shipments will be in the range of 450 MW to 460 MW versus its earlier projection of 400 MW to 420 MW.

ReneSola − a company that hasn’t seen profits since the second quarter of 2011− expects to report gross margin in the range of 5% to 6%, up from its previous guidance of 3% to 5%.

For 2013, ReneSola expects to ship as much as 2.8 gigawatts (GW) to 3.0 GW of solar wafers and modules, up from its previous prediction of 2.7 GW to 2.9 GW. It expects its solar module shipments to be in the range of 1.6 GW to 1.8 GW versus its previous guided range of 1.4 GW to 1.6 GW.

Although the company failed to register profits for quite a few quarters now, it is gradually expanding its portfolio internationally. ReneSola’s first-quarter loss narrowed from the year-ago quarterly loss due to lower operating expenses and higher solar module shipments.

ReneSola has been busy expanding its international footprint. Its Japanese unit began operations in October last year. The company expects more shipments to Japan in the second half of 2013. Japan would soon turn out to be ReneSola’s third largest market following Europe and the U.S.

Although the company expects to post improved results during the second half of the year, the undesirable impact of countervailing duties of 15.24% and anti-dumping duties of 25.96% levied by the U.S. will pose a headwind to ReneSola’s export business. Europe too has also followed suit and announced its decision to impose tariff duties on solar panels manufactured in China.

However, with the increasing need to develop renewable energy in response to stringent environmental regulations, countries worldwide are relying on solar energy for generating electricity.

The company presently retains a Zacks Rank #3 (Hold). Among the stocks worth considering in the solar space are SunPower Corporation (SPWR - Analyst Report), JinkoSolar Holding Co., Ltd. (JKS - Snapshot Report) and Yingli Green Energy Holding Co. Ltd. (YGE - Snapshot Report). SunPower retains a Zacks Rank #1 (Strong Buy), while JinkoSolar and Yingli retain a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%