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ReneSola (SOL) Beats on Q3 Earnings, Misses on Revenues
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ReneSola Ltd. (SOL - Free Report) delivered third-quarter 2020 adjusted earnings of 5 cents per American Depositary Share (ADS) from continuing operations, which beat the Zacks Consensus Estimate of a penny by a whopping 400%. The company’s bottom line, however, declined 78.3% from earnings of 23 cents per ADS recorded in the prior-year quarter.
The company posted GAAP earnings of 4 cents in the reported quarter, down from 6 cents reported in the third quarter of 2019. The year-over-year deterioration can be attributed to lower revenues and gross profit.
Revenues
ReneSola’s third-quarter net revenues of $9.7 million missed the Zacks Consensus Estimate of $10 million by 3%. Moreover, the top line slumped 85% year over year. The quarterly revenues were near the high end of the company’s projection of $8-$10 million.
As of Sep 30, 2020, ReneSola had 193 megawatts (MW) of rooftop projects in operation. Of these, the company operates 149.2 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.
As of Sep 30, 2020, the company has completed 800 MW of projects. At the end of the third quarter, ReneSola had 732 MW of late-stage projects. Of these late-stage projects, 23 MW are currently under construction.
Operational Highlights
The company generated gross margin of 60.6% in the quarter ended September compared with the year-ago quarter’s 24.6%. Operating expenses totaled $3 million, up 5.6% from $2.9 million witnessed in the year-earlier quarter.
Operating income in the July-September quarter came in at $2.9 million, down from the prior-year quarter’s $4.6 million.
Financial Condition
As of Sep 30, 2020, ReneSola had cash and cash equivalents of $15.6 million compared with $15.5 million as of Mar 31, 2020.
Long-term borrowings were $3 million as of Sep 30, 2020 compared with $8.5 million as of Mar 31, 2020.
Net cash used in operating activities was $1.9 million at the end of the third quarter compared with cash outflow of $9.87 million as of Mar 31, 2020.
Guidance
ReneSola expects fourth-quarter 2020 revenues of $23-$25 million, with gross margin in the range of 11-13%. The Zacks Consensus Estimate for current-quarter revenues is pegged at $33.4 million, higher than the guided range.
For 2020, the company had earlier projected revenues of $80-$100 million, with an overall gross margin of 18-20%.
Enphase Energy (ENPH - Free Report) reported third-quarter 2020 adjusted earnings of 20 cents per share, which missed 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.
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ReneSola (SOL) Beats on Q3 Earnings, Misses on Revenues
ReneSola Ltd. (SOL - Free Report) delivered third-quarter 2020 adjusted earnings of 5 cents per American Depositary Share (ADS) from continuing operations, which beat the Zacks Consensus Estimate of a penny by a whopping 400%. The company’s bottom line, however, declined 78.3% from earnings of 23 cents per ADS recorded in the prior-year quarter.
The company posted GAAP earnings of 4 cents in the reported quarter, down from 6 cents reported in the third quarter of 2019.
The year-over-year deterioration can be attributed to lower revenues and gross profit.
Revenues
ReneSola’s third-quarter net revenues of $9.7 million missed the Zacks Consensus Estimate of $10 million by 3%. Moreover, the top line slumped 85% year over year. The quarterly revenues were near the high end of the company’s projection of $8-$10 million.
Renesola Ltd. Price, Consensus and EPS Surprise
Renesola Ltd. price-consensus-eps-surprise-chart | Renesola Ltd. Quote
Projects
As of Sep 30, 2020, ReneSola had 193 megawatts (MW) of rooftop projects in operation. Of these, the company operates 149.2 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.
As of Sep 30, 2020, the company has completed 800 MW of projects. At the end of the third quarter, ReneSola had 732 MW of late-stage projects. Of these late-stage projects, 23 MW are currently under construction.
Operational Highlights
The company generated gross margin of 60.6% in the quarter ended September compared with the year-ago quarter’s 24.6%.
Operating expenses totaled $3 million, up 5.6% from $2.9 million witnessed in the year-earlier quarter.
Operating income in the July-September quarter came in at $2.9 million, down from the prior-year quarter’s $4.6 million.
Financial Condition
As of Sep 30, 2020, ReneSola had cash and cash equivalents of $15.6 million compared with $15.5 million as of Mar 31, 2020.
Long-term borrowings were $3 million as of Sep 30, 2020 compared with $8.5 million as of Mar 31, 2020.
Net cash used in operating activities was $1.9 million at the end of the third quarter compared with cash outflow of $9.87 million as of Mar 31, 2020.
Guidance
ReneSola expects fourth-quarter 2020 revenues of $23-$25 million, with gross margin in the range of 11-13%. The Zacks Consensus Estimate for current-quarter revenues is pegged at $33.4 million, higher than the guided range.
For 2020, the company had earlier projected 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.
Some Q3 Solar Releases
Enphase Energy (ENPH - Free Report) reported third-quarter 2020 adjusted earnings of 20 cents per share, which missed 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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>