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ReneSola's (SOL) Earnings and Revenues Top Estimates in Q4
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ReneSola Ltd. (SOL - Free Report) reported earnings of 4 cents per American Depositary Share (ADS) in the fourth quarter of 2017, beating the Zacks Consensus Estimate by a penny. The reported figure reflects substantial improvement when compared to a loss of $1.26 in the year-ago quarter.
For 2017, the company reported earnings of 13 cents per ADS.
Revenues
ReneSola’s fourth-quarter net revenues of $64.8 million surpassed the Zacks Consensus Estimate of $56 million by 15.7%. Reported revenues improved 61.1% year over year and 78.6% sequentially.
Notably, quarterly revenues exceeded the company’s guidance range of $55-$60 million. The upside was driven by sale of projects, particularly in China, and provision of EPC services.
For 2017, the company reported net revenues of $103 million compared with $80.5 million in 2016.
Project Details
As of Dec 31, 2017, ReneSola owns over 187 megawatt (MW) of rooftop projects in operation and had over 28 MW of rooftop projects under construction.
As of Dec 31, 2017, the company had a pipeline of more than 1.1 gigawatts of projects in various stages, of which 546.5 MW are late-stage projects. Of these late-stage projects, 92.2 MW are under construction.
Operational Highlights
Gross margin of 10.54% in the fourth quarter expanded 63 basis points (bps) year over year but contracted 701 bps, sequentially.
Operating expenses totaled $1.9 million, up 1% from the prior-year quarter but down 24.1% from the previous quarter.
Operating income in the quarter came in at $4.9 million, up 136% from year-ago quarter’s figure of $2.1 million. The company had reported operating income of $3.8 million in the fourth quarter of 2016.
Financial Condition
As of Dec 31, 2017, ReneSola had cash and cash equivalents of $13.4 million compared with $5.2 million as of Sep 30, 2017.
Long-term borrowings were $32.5 million as of Dec 31, 2017, compared with $30.4 million at the end of September 2017.
Net cash provided by operating activities at the end of 2017 were $18.4 million, down from $27.5 million at 2016-end.
Guidance
ReneSola projects first-quarter 2018 revenues in the band of $30−$35 million, with overall gross margin in the 15-20% range. Also, the company expects to connect 5 MW to 10 MW of projects and monetize 5 MW projects in international markets, during the quarter.
Business Update
In recent months, ReneSola has successfully penetrated the Hungarian solar market and secured a project pipeline of 38.4 MW. Moreover, the company is developing solar projects in other new markets, including Spain, South Korea and India. In Spain, ReneSola currently has an early-stage pipeline of 162 MW.
Peer Releases
JinkoSolar Holding (JKS - Free Report) reported fourth-quarter 2017 earnings per American Depositary Share (ADS) of 12 cents which missed the Zacks Consensus Estimate of 23 cents by 47.8%.
First Solar (FSLR - Free Report) incurred fourth-quarter 2017 adjusted loss of 25 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 32 cents by 21.9%.
Enphase Energy (ENPH - Free Report) delivered fourth-quarter 2017 adjusted earnings of 1 cent per share, which compares favorably with the Zacks Consensus Estimate of break-even earnings.
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ReneSola's (SOL) Earnings and Revenues Top Estimates in Q4
ReneSola Ltd. (SOL - Free Report) reported earnings of 4 cents per American Depositary Share (ADS) in the fourth quarter of 2017, beating the Zacks Consensus Estimate by a penny. The reported figure reflects substantial improvement when compared to a loss of $1.26 in the year-ago quarter.
For 2017, the company reported earnings of 13 cents per ADS.
Revenues
ReneSola’s fourth-quarter net revenues of $64.8 million surpassed the Zacks Consensus Estimate of $56 million by 15.7%. Reported revenues improved 61.1% year over year and 78.6% sequentially.
Notably, quarterly revenues exceeded the company’s guidance range of $55-$60 million. The upside was driven by sale of projects, particularly in China, and provision of EPC services.
Renesola Ltd. Price, Consensus and EPS Surprise
Renesola Ltd. Price, Consensus and EPS Surprise | Renesola Ltd. Quote
For 2017, the company reported net revenues of $103 million compared with $80.5 million in 2016.
Project Details
As of Dec 31, 2017, ReneSola owns over 187 megawatt (MW) of rooftop projects in operation and had over 28 MW of rooftop projects under construction.
As of Dec 31, 2017, the company had a pipeline of more than 1.1 gigawatts of projects in various stages, of which 546.5 MW are late-stage projects. Of these late-stage projects, 92.2 MW are under construction.
Operational Highlights
Gross margin of 10.54% in the fourth quarter expanded 63 basis points (bps) year over year but contracted 701 bps, sequentially.
Operating expenses totaled $1.9 million, up 1% from the prior-year quarter but down 24.1% from the previous quarter.
Operating income in the quarter came in at $4.9 million, up 136% from year-ago quarter’s figure of $2.1 million. The company had reported operating income of $3.8 million in the fourth quarter of 2016.
Financial Condition
As of Dec 31, 2017, ReneSola had cash and cash equivalents of $13.4 million compared with $5.2 million as of Sep 30, 2017.
Long-term borrowings were $32.5 million as of Dec 31, 2017, compared with $30.4 million at the end of September 2017.
Net cash provided by operating activities at the end of 2017 were $18.4 million, down from $27.5 million at 2016-end.
Guidance
ReneSola projects first-quarter 2018 revenues in the band of $30−$35 million, with overall gross margin in the 15-20% range. Also, the company expects to connect 5 MW to 10 MW of projects and monetize 5 MW projects in international markets, during the quarter.
Business Update
In recent months, ReneSola has successfully penetrated the Hungarian solar market and secured a project pipeline of 38.4 MW. Moreover, the company is developing solar projects in other new markets, including Spain, South Korea and India. In Spain, ReneSola currently has an early-stage pipeline of 162 MW.
Peer Releases
JinkoSolar Holding (JKS - Free Report) reported fourth-quarter 2017 earnings per American Depositary Share (ADS) of 12 cents which missed the Zacks Consensus Estimate of 23 cents by 47.8%.
First Solar (FSLR - Free Report) incurred fourth-quarter 2017 adjusted loss of 25 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 32 cents by 21.9%.
Enphase Energy (ENPH - Free Report) delivered fourth-quarter 2017 adjusted earnings of 1 cent per share, which compares favorably with the Zacks Consensus Estimate of break-even earnings.
Zacks Rank
ReneSola currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
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