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ReneSola's (SOL) Earnings & Revenues Beat Estimates in Q2
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ReneSola Ltd. (SOL - Free Report) delivered earnings of 8 cents per American Depositary Share (ADS) from continuing operations in second-quarter 2020, which beat the Zacks Consensus Estimate of a break-even. The company’s bottom line, however, declined from the earnings of 13 cents per ADS recorded in the prior-year quarter.
Revenues
ReneSola’s second-quarter net revenues of $26.2 million surpassed the Zacks Consensus Estimate of $22.4 million. Moreover, the top line soared 93% year over year. The quarterly revenues also exceeded the company’s projection of $22-$25 million.
Projects
As of Jun 30, 2020, ReneSola had 203.8 megawatts (MW) of rooftop projects in operation. Of these, the company operates 160 MW of rooftop projects in China, 15.4 MW in Romania, 24.1 MW in the United States, and 4.3 MW in the U.K. It currently has 11 MW of rooftop projects under construction in Poland and 12.3 MW in Hungary.
As of Jun 30, 2020, the company has completed 800 MW of projects. At the end of the second quarter, ReneSola had 506.6 MW of late-stage projects. Of these late-stage projects, 23.3 MW are currently under construction.
The company generated a gross margin of 29.1% in the June-end quarter compared with the year-ago quarter’s 77.3%.
Operating expenses totaled $2.87 million, up 15.8% from the $3.41 million witnessed in the year-earlier quarter.
Operating income in the April-June quarter came in at $4.57 million, down from the prior-year quarter’s $7.08 million.
Financial Condition
As of Jun 30, 2020, ReneSola had cash and cash equivalents of $11.28 million compared with $15.46 million as of Mar 31, 2020.
Long-term borrowings were $3 million as of Jun 30, 2020 compared with $8.5 million as of Mar 31, 2020.
Net cash from operating activities was $5.36 million at the end of second quarter compared with the cash outflow of $9.87 million as of Mar 31, 2020.
Guidance
ReneSola expects third-quarter 2020 revenues of $8-$10 million, with an overall gross margin of 38-42%. The Zacks Consensus Estimate for the current-quarter revenues is pegged at $18.8 million, higher than the company’s guided range.
For 2020, management continues to project revenues of $80-$100 million, with an overall gross margin of 18-20%.
Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2020 adjusted earnings of 17 cents per share, which outpaced the Zacks Consensus Estimate of 14 cents.
SolarEdge Technologies, Inc. (SEDG - Free Report) delivered second-quarter adjusted earnings of 97 cents per share, beating the Zacks Consensus Estimate of 69 cents.
SunPower Corp. (SPWR - Free Report) incurred an adjusted loss of 22 cents per share in the June-end quarter, narrower than the Zacks Consensus Estimate of a loss of 42 cents.
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ReneSola's (SOL) Earnings & Revenues Beat Estimates in Q2
ReneSola Ltd. (SOL - Free Report) delivered earnings of 8 cents per American Depositary Share (ADS) from continuing operations in second-quarter 2020, which beat the Zacks Consensus Estimate of a break-even. The company’s bottom line, however, declined from the earnings of 13 cents per ADS recorded in the prior-year quarter.
Revenues
ReneSola’s second-quarter net revenues of $26.2 million surpassed the Zacks Consensus Estimate of $22.4 million. Moreover, the top line soared 93% year over year. The quarterly revenues also exceeded the company’s projection of $22-$25 million.
Projects
As of Jun 30, 2020, ReneSola had 203.8 megawatts (MW) of rooftop projects in operation. Of these, the company operates 160 MW of rooftop projects in China, 15.4 MW in Romania, 24.1 MW in the United States, and 4.3 MW in the U.K. It currently has 11 MW of rooftop projects under construction in Poland and 12.3 MW in Hungary.
As of Jun 30, 2020, the company has completed 800 MW of projects. At the end of the second quarter, ReneSola had 506.6 MW of late-stage projects. Of these late-stage projects, 23.3 MW are currently under construction.
Renesola Ltd. Price, Consensus and EPS Surprise
Renesola Ltd. price-consensus-eps-surprise-chart | Renesola Ltd. Quote
Operational Highlights
The company generated a gross margin of 29.1% in the June-end quarter compared with the year-ago quarter’s 77.3%.
Operating expenses totaled $2.87 million, up 15.8% from the $3.41 million witnessed in the year-earlier quarter.
Operating income in the April-June quarter came in at $4.57 million, down from the prior-year quarter’s $7.08 million.
Financial Condition
As of Jun 30, 2020, ReneSola had cash and cash equivalents of $11.28 million compared with $15.46 million as of Mar 31, 2020.
Long-term borrowings were $3 million as of Jun 30, 2020 compared with $8.5 million as of Mar 31, 2020.
Net cash from operating activities was $5.36 million at the end of second quarter compared with the cash outflow of $9.87 million as of Mar 31, 2020.
Guidance
ReneSola expects third-quarter 2020 revenues of $8-$10 million, with an overall gross margin of 38-42%. The Zacks Consensus Estimate for the current-quarter revenues is pegged at $18.8 million, higher than the company’s guided range.
For 2020, management continues to project revenues of $80-$100 million, with an overall gross margin of 18-20%.
Zacks Rank
ReneSola currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2020 adjusted earnings of 17 cents per share, which outpaced the Zacks Consensus Estimate of 14 cents.
SolarEdge Technologies, Inc. (SEDG - Free Report) delivered second-quarter adjusted earnings of 97 cents per share, beating the Zacks Consensus Estimate of 69 cents.
SunPower Corp. (SPWR - Free Report) incurred an adjusted loss of 22 cents per share in the June-end quarter, narrower than the Zacks Consensus Estimate of a loss of 42 cents.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through Q2 2020, while the S&P 500 gained an impressive +44.0%, five of our strategies returned +50.9%, +93.8%, +122.2%, +153.0%, and even +156.8%.
This outperformance has not just been a recent phenomenon. From 2000 – Q2 2020, while the S&P averaged +5.5% per year, our top strategies averaged up to +51.7% per year.
See their latest picks free >>