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ReneSola Ltd. (SOL) to Post Q3 Earnings: What's in Store?
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ReneSola Ltd. (SOL - Free Report) is set to report third-quarter 2020 results on Dec 1, after market close.
In the trailing four quarters, it came up with an earnings surprise of 185.56%, on average.
Let's take a closer look at the factors influencing the company’s upcoming quarterly results.
Factors to Consider
ReneSola has been facing stiff challenges and project delays over the past few quarters due to the continued impacts of the COVID-19 pandemic. Consequently, during the second-quarter earnings call, the company announced its anticipation to witness some slowdown in customer activities for the remainder of 2020. This, in turn, can be expected to have had an adverse impact on the company’s third-quarter results.
In November, ReneSola released its preliminary results for the third quarter of 2020, wherein it expects to generate revenues toward the high end of the previously announced $8-$10 million guidance range. In line with this, the Zacks Consensus Estimate for third-quarter sales is pegged at $10 million, which indicates a massive 84.8% decline from the year-ago quarter’s reported figure.
Meanwhile, the company anticipates its gross margins to exceed 42% compared to the prior guidance of a 38-42% increase.
The company's strong focus on prudent cost-control management is likely to have been a major factor in delivering robust bottom-line results. Moreover, the completion and the commencement of commercial operation of a 21.05-MWp portfolio of community solar projects in Minnesota, during August, is likely to have favorably contributed to the third-quarter bottom-line results.
This might have encouraged the company to expect its third-quarter results to reflect at least $2 million in net profits, as stated in its preliminary results. We may expect the soon-to-be-reported quarterly results to duly represent solid bottom-line figures, based on such profit projections.
Earnings Whispers
Our proven model does not predict an earnings beat for ReneSola this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Enphase Energy (ENPH - Free Report) reported third-quarter 2020 adjusted earnings of 20 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 25%.
First Solar (FSLR - Free Report) reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.
SunPower Corp. (SPWR - Free Report) incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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ReneSola Ltd. (SOL) to Post Q3 Earnings: What's in Store?
ReneSola Ltd. (SOL - Free Report) is set to report third-quarter 2020 results on Dec 1, after market close.
In the trailing four quarters, it came up with an earnings surprise of 185.56%, on average.
Let's take a closer look at the factors influencing the company’s upcoming quarterly results.
Factors to Consider
ReneSola has been facing stiff challenges and project delays over the past few quarters due to the continued impacts of the COVID-19 pandemic. Consequently, during the second-quarter earnings call, the company announced its anticipation to witness some slowdown in customer activities for the remainder of 2020. This, in turn, can be expected to have had an adverse impact on the company’s third-quarter results.
In November, ReneSola released its preliminary results for the third quarter of 2020, wherein it expects to generate revenues toward the high end of the previously announced $8-$10 million guidance range. In line with this, the Zacks Consensus Estimate for third-quarter sales is pegged at $10 million, which indicates a massive 84.8% decline from the year-ago quarter’s reported figure.
Meanwhile, the company anticipates its gross margins to exceed 42% compared to the prior guidance of a 38-42% increase.
The company's strong focus on prudent cost-control management is likely to have been a major factor in delivering robust bottom-line results. Moreover, the completion and the commencement of commercial operation of a 21.05-MWp portfolio of community solar projects in Minnesota, during August, is likely to have favorably contributed to the third-quarter bottom-line results.
This might have encouraged the company to expect its third-quarter results to reflect at least $2 million in net profits, as stated in its preliminary results. We may expect the soon-to-be-reported quarterly results to duly represent solid bottom-line figures, based on such profit projections.
Earnings Whispers
Our proven model does not predict an earnings beat for ReneSola this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.
Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: ReneSola currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Renesola Ltd. Price and EPS Surprise
Renesola Ltd. price-eps-surprise | Renesola Ltd. Quote
Some Q3 Solar Releases
Enphase Energy (ENPH - Free Report) reported third-quarter 2020 adjusted earnings of 20 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 25%.
First Solar (FSLR - Free Report) reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.
SunPower Corp. (SPWR - Free Report) incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>