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Emeren (SOL) Q1 Earnings Rise Y/Y, Revenues Miss Estimates
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Emeren Group Ltd (SOL - Free Report) reported break-even earnings per American Depositary Share (“ADS”) in the first quarter of 2023. This indicates an improvement from the year-ago quarter’s loss of 3 cents per share.
The Zacks Consensus Estimate for first-quarter earnings was pegged at 4 cents per share.
Revenues
Emeren’s first-quarter net revenues of $12.9 million surged 266.4% year over year from $3.5 million. However, the reported figure lagged the Zacks Consensus Estimate of $31 million by 58.1%.
Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise
As of Mar 31, 2023, SOL had 258 megawatts (MW) of projects in operation. Of these, the company operates 60 MW in Europe, 24 MW in the United States and 174 MW in China.
During the first quarter, Emeren continued to increase its mid-to-late-stage pipeline to 3.3 gigawatts. As of Mar 31, 2023, the company had a storage pipeline of 6.2 gigawatt-hour in the United States, Europe and China at different stages of development.
Operational Highlights
Its operating expenses amounted to $4.6 million in the reported quarter, up 35.3% year over year. The gross profit in the quarter came in at $1.6 million compared with $1.1 million in the year-ago period.
The company incurred an operating loss of $3 million compared with a loss of $2.2 million in the prior-year quarter.
Financial Condition
As of Mar 31, 2023, Emeren had cash and cash equivalents of $66.7 million compared with $107.1 million as of Dec 31, 2022.
The cash outflow from operating activities totaled $23.7 million as of Mar 31, 2023, compared with $14.7 million as of Mar 31, 2022.
Guidance
For the second quarter of 2023, Emeren projects revenues in the range of $38-$40 million. It also expects a gross margin of 32-35% for the same time frame. The Zacks Consensus Estimate for second-quarter revenues is pegged at $42.2 million, higher than the company’s guidance.
For 2023, SOL still expects revenues in the band of $154-$174 million, with a gross margin of 30%. The Zacks Consensus Estimate for 2023 revenues is pinned at $151.1 million, lower than the company’s expectation.
JinkoSolar Holding Co. Ltd. (JKS - Free Report) reported first-quarter 2023 earnings per ADS of $2.18. The Zacks Consensus Estimate for the quarter was pegged at 37 cents. The company reported earnings per ADS of 10 cents in the year-ago quarter, reflecting a significant improvement from the prior-year figure.
In the quarter under review, JinkoSolar’s total revenues of $3,396.9 million surpassed the Zacks Consensus Estimate of $3,302 million by 2.9%. The top line improved 45.8% on a year-over-year basis due to an increase in solar module shipments.
First Solar, Inc. (FSLR - Free Report) recorded first-quarter 2023 earnings of 40 cents per share, which missed the Zacks Consensus Estimate of 99 cents by 59.6%. However, the bottom line improved significantly from the prior-year quarter’s reported loss of 41 cents per share.
Net sales amounted to $548 million, which missed the Zacks Consensus Estimate of $724 million by 23.7%. However, the top line improved 49.4% from the year-ago quarter’s $367 million.
Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2023 adjusted earnings of $1.37 per share, highlighting a solid 73.4% improvement from 79 cents in the prior-year period. The bottom line also beat the Zacks Consensus Estimate of $1.21 by 13.2%.
Revenues of $726 million beat the Zacks Consensus Estimate of $723 million by 0.4%. The top line soared 64.5% from the prior-year quarter’s reported figure of $441.3 million.
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Emeren (SOL) Q1 Earnings Rise Y/Y, Revenues Miss Estimates
Emeren Group Ltd (SOL - Free Report) reported break-even earnings per American Depositary Share (“ADS”) in the first quarter of 2023. This indicates an improvement from the year-ago quarter’s loss of 3 cents per share.
The Zacks Consensus Estimate for first-quarter earnings was pegged at 4 cents per share.
Revenues
Emeren’s first-quarter net revenues of $12.9 million surged 266.4% year over year from $3.5 million. However, the reported figure lagged the Zacks Consensus Estimate of $31 million by 58.1%.
Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise
Emeren Group Ltd. Sponsored ADR price-consensus-eps-surprise-chart | Emeren Group Ltd. Sponsored ADR Quote
Projects
As of Mar 31, 2023, SOL had 258 megawatts (MW) of projects in operation. Of these, the company operates 60 MW in Europe, 24 MW in the United States and 174 MW in China.
During the first quarter, Emeren continued to increase its mid-to-late-stage pipeline to 3.3 gigawatts. As of Mar 31, 2023, the company had a storage pipeline of 6.2 gigawatt-hour in the United States, Europe and China at different stages of development.
Operational Highlights
Its operating expenses amounted to $4.6 million in the reported quarter, up 35.3% year over year. The gross profit in the quarter came in at $1.6 million compared with $1.1 million in the year-ago period.
The company incurred an operating loss of $3 million compared with a loss of $2.2 million in the prior-year quarter.
Financial Condition
As of Mar 31, 2023, Emeren had cash and cash equivalents of $66.7 million compared with $107.1 million as of Dec 31, 2022.
The cash outflow from operating activities totaled $23.7 million as of Mar 31, 2023, compared with $14.7 million as of Mar 31, 2022.
Guidance
For the second quarter of 2023, Emeren projects revenues in the range of $38-$40 million. It also expects a gross margin of 32-35% for the same time frame. The Zacks Consensus Estimate for second-quarter revenues is pegged at $42.2 million, higher than the company’s guidance.
For 2023, SOL still expects revenues in the band of $154-$174 million, with a gross margin of 30%. The Zacks Consensus Estimate for 2023 revenues is pinned at $151.1 million, lower than the company’s expectation.
Zacks Rank
Emeren currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
JinkoSolar Holding Co. Ltd. (JKS - Free Report) reported first-quarter 2023 earnings per ADS of $2.18. The Zacks Consensus Estimate for the quarter was pegged at 37 cents. The company reported earnings per ADS of 10 cents in the year-ago quarter, reflecting a significant improvement from the prior-year figure.
In the quarter under review, JinkoSolar’s total revenues of $3,396.9 million surpassed the Zacks Consensus Estimate of $3,302 million by 2.9%. The top line improved 45.8% on a year-over-year basis due to an increase in solar module shipments.
First Solar, Inc. (FSLR - Free Report) recorded first-quarter 2023 earnings of 40 cents per share, which missed the Zacks Consensus Estimate of 99 cents by 59.6%. However, the bottom line improved significantly from the prior-year quarter’s reported loss of 41 cents per share.
Net sales amounted to $548 million, which missed the Zacks Consensus Estimate of $724 million by 23.7%. However, the top line improved 49.4% from the year-ago quarter’s $367 million.
Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2023 adjusted earnings of $1.37 per share, highlighting a solid 73.4% improvement from 79 cents in the prior-year period. The bottom line also beat the Zacks Consensus Estimate of $1.21 by 13.2%.
Revenues of $726 million beat the Zacks Consensus Estimate of $723 million by 0.4%. The top line soared 64.5% from the prior-year quarter’s reported figure of $441.3 million.