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ReneSola (SOL) Q2 Earnings Beat Estimates, Revenues Drop Y/Y

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ReneSola Ltd (SOL - Free Report) reported second-quarter 2021 earnings of 10 cents per American Depositary Share (ADS) from continuing operations, which exceeded the Zacks Consensus Estimate of 4 cents by a solid 150%. The reported figure also improved from the year-ago quarter’s earnings of 6 cents by 66.7%.

The year-over-year improvement in the bottom line can be attributed to strength observed in the company’s business in both Europe and the United States, driven by strong demand for high-quality projects.

Revenues

ReneSola’s second-quarter net revenues of $18.5 million missed the Zacks Consensus Estimate of $21 million by 10.2%. Moreover, the top line decreased 29.2% year over year from $26.2 million.

Renesola Ltd. Price, Consensus and EPS Surprise

Renesola Ltd. Price, Consensus and EPS Surprise

Renesola Ltd. price-consensus-eps-surprise-chart | Renesola Ltd. Quote

Projects

As of Jun 30, 2021, ReneSola had 170 megawatts (MW) of rooftop projects in operation. Of these, the company operates 145.8 MW of rooftop projects in China and 24.1 MW in the United States.

As of Jun 30, 2021, the company completed 850 MW of projects. At the end of the second quarter of 2021, ReneSola had 1,598 MW of late-stage projects. Of these, 15 MW are under construction.

Operational Highlights

Operating expenses totaled $4 million during the second quarter, up 39.6% year over year.

Operating income in the quarter came in at $7.3 million compared with the year-ago quarter’s operating income of $4.6 million.

Financial Condition

As of Jun 30, 2021, ReneSola had cash and cash equivalents of $286.1 million compared with $40.6 million as of Dec 31, 2020.

Operating cash flow from continuing operations was $0.6 million as of Jun 30, 2021, compared with cash flow of $5.4 million in the year-ago period.

Guidance

ReneSola expects third-quarter 2021 revenues of $19-$21 million, with an overall gross margin of 36-40%. For third-quarter revenues, the Zacks Consensus Estimate is pegged at $26.4 million, higher than the company’s expectation.

For 2021, the company continues to project revenues in the range of $90-$100 million. The Zacks Consensus Estimate for 2021 revenues pegged at $98.5 million lies higher than the midpoint of the company’s guidance.

However, overall gross margin is now expected to be more than 30%, higher than the company’s earlier outlook of more than 25%.

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.

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