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Emeren Group (SOL) Reports Q1 Loss, Revenues Rise 15% Y/Y
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Emeren Group Ltd’s (SOL - Free Report) share price declined 7.1% to reach $1.95 on May 24 following the company’s latest quarterly release.
The company incurred a loss per American Depositary Share (“ADS”) of 8 cents for the first quarter of 2024, which missed the Zacks Consensus Estimate of break-even earnings. The figure also reflects a deterioration from the year-ago quarter’s reported figure of break-even earnings.
Revenues
Emeren’s first-quarter net revenues of $14.8 million improved a solid 14.8% from $12.9 million reported in the year-ago period. However, the reported figure lagged the Zacks Consensus Estimate of $18 million by 18.9%.
Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise
The year-over-year improvement can be attributed to the company’s expanding Development Service Agreement business.
Projects
As of Mar 31, 2024, SOL had 255 megawatts (MW) of projects in operation. Of these, the company operates 67 MW in Europe, 24 MW in the United States and 164 MW in China.
During the first quarter, Emeren continued to increase its advanced and early-stage solar development project pipeline to 8,986 MW. As of Mar 31, 2024, the company had a combined storage pipeline of 8 MWh in the United States, Europe and China at different stages of development.
Operational Highlights
Emeren’s operating expenses amounted to $4.7 million in the reported quarter, up 2.6% year over year.
The gross profit in the quarter came in at $4 million compared with $1.6 million in the year-ago period.
The company incurred an operating loss of $0.7 million compared with an operating loss of $3 million in the prior-year quarter.
Financial Condition
As of Mar 31, 2024, Emeren had cash and cash equivalents of $55.1 million compared with $66.7 million as of Mar 31, 2023.
The company’s long-term debt totaled $23 million as of Mar 31, 2024, up from $22 million as of Mar 31, 2023.
The cash outflow from operating activities totaled $3.3 million as of Mar 31, 2024 compared with cash outflow of $23.7 million as of Mar 31, 2023.
Guidance
For the second quarter of 2024, Emeren projects revenues in the range of $20-$23 million. It also expects a gross margin of 40-45% for the same period.
For 2024, SOL reaffirmed its guidance. The company still expects to generate revenues in the range of $150-$160 million. The Zacks Consensus Estimate for 2024 revenues, pegged at $147.6 million, lies lower than the company’s guidance range.
Emeren also continues to expect its earnings per ADS to be 43 cents during 2024. The Zacks Consensus Estimate for 2024 earnings, pegged at 35 cents, lies lower than the company’s guidance.
The gross margin for 2024 is still expected to be 30%.
Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2024 adjusted earnings of 35 cents per share, which highlights a 74.5% decline from $1.37 reported in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 42 cents per share by 16.7%.
ENPH’s first-quarter revenues of $263.3 million missed the Zacks Consensus Estimate of $284 million. The top line also declined 63.7% from the prior-year quarter’s reported figure of $726 million.
Sunnova Energy (NOVA - Free Report) reported a first-quarter 2024 loss of 57 cents per share, which highlights an improvement from the loss of 70 cents per share reported in the prior-year quarter. The bottom line also came in narrower than the Zacks Consensus Estimate of a loss of 79 cents per share.
NOVA’s first-quarter revenues of $160.9 million missed the Zacks Consensus Estimate of $198 million. The top line also slipped 0.5% from the prior-year quarter’s reported figure of $161.7 million.
JinkoSolar Holding (JKS - Free Report) reported first-quarter 2024 earnings per ADS of 74 cents per share, down from $2.18 reported in the prior-year quarter. The Zacks Consensus Estimate for earnings was pegged at a loss of 44 cents per share.
JKS’ first-quarter revenues of $3.19 billion missed the Zacks Consensus Estimate of $3.27 billion. The top line also slipped 5.9% from the prior-year quarter’s reported figure of $3.39 million.
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Emeren Group (SOL) Reports Q1 Loss, Revenues Rise 15% Y/Y
Emeren Group Ltd’s (SOL - Free Report) share price declined 7.1% to reach $1.95 on May 24 following the company’s latest quarterly release.
The company incurred a loss per American Depositary Share (“ADS”) of 8 cents for the first quarter of 2024, which missed the Zacks Consensus Estimate of break-even earnings. The figure also reflects a deterioration from the year-ago quarter’s reported figure of break-even earnings.
Revenues
Emeren’s first-quarter net revenues of $14.8 million improved a solid 14.8% from $12.9 million reported in the year-ago period. However, the reported figure lagged the Zacks Consensus Estimate of $18 million by 18.9%.
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
The year-over-year improvement can be attributed to the company’s expanding Development Service Agreement business.
Projects
As of Mar 31, 2024, SOL had 255 megawatts (MW) of projects in operation. Of these, the company operates 67 MW in Europe, 24 MW in the United States and 164 MW in China.
During the first quarter, Emeren continued to increase its advanced and early-stage solar development project pipeline to 8,986 MW. As of Mar 31, 2024, the company had a combined storage pipeline of 8 MWh in the United States, Europe and China at different stages of development.
Operational Highlights
Emeren’s operating expenses amounted to $4.7 million in the reported quarter, up 2.6% year over year.
The gross profit in the quarter came in at $4 million compared with $1.6 million in the year-ago period.
The company incurred an operating loss of $0.7 million compared with an operating loss of $3 million in the prior-year quarter.
Financial Condition
As of Mar 31, 2024, Emeren had cash and cash equivalents of $55.1 million compared with $66.7 million as of Mar 31, 2023.
The company’s long-term debt totaled $23 million as of Mar 31, 2024, up from $22 million as of Mar 31, 2023.
The cash outflow from operating activities totaled $3.3 million as of Mar 31, 2024 compared with cash outflow of $23.7 million as of Mar 31, 2023.
Guidance
For the second quarter of 2024, Emeren projects revenues in the range of $20-$23 million. It also expects a gross margin of 40-45% for the same period.
For 2024, SOL reaffirmed its guidance. The company still expects to generate revenues in the range of $150-$160 million. The Zacks Consensus Estimate for 2024 revenues, pegged at $147.6 million, lies lower than the company’s guidance range.
Emeren also continues to expect its earnings per ADS to be 43 cents during 2024. The Zacks Consensus Estimate for 2024 earnings, pegged at 35 cents, lies lower than the company’s guidance.
The gross margin for 2024 is still expected to be 30%.
Zacks Rank
Emeren Group 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 first-quarter 2024 adjusted earnings of 35 cents per share, which highlights a 74.5% decline from $1.37 reported in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 42 cents per share by 16.7%.
ENPH’s first-quarter revenues of $263.3 million missed the Zacks Consensus Estimate of $284 million. The top line also declined 63.7% from the prior-year quarter’s reported figure of $726 million.
Sunnova Energy (NOVA - Free Report) reported a first-quarter 2024 loss of 57 cents per share, which highlights an improvement from the loss of 70 cents per share reported in the prior-year quarter. The bottom line also came in narrower than the Zacks Consensus Estimate of a loss of 79 cents per share.
NOVA’s first-quarter revenues of $160.9 million missed the Zacks Consensus Estimate of $198 million. The top line also slipped 0.5% from the prior-year quarter’s reported figure of $161.7 million.
JinkoSolar Holding (JKS - Free Report) reported first-quarter 2024 earnings per ADS of 74 cents per share, down from $2.18 reported in the prior-year quarter. The Zacks Consensus Estimate for earnings was pegged at a loss of 44 cents per share.
JKS’ first-quarter revenues of $3.19 billion missed the Zacks Consensus Estimate of $3.27 billion. The top line also slipped 5.9% from the prior-year quarter’s reported figure of $3.39 million.