We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ReneSola (SOL) Q1 Loss Narrower than Expected, Revenues Down
Read MoreHide Full Article
ReneSola Ltd. (SOL - Free Report) reported a loss of $1.16 per American Depositary Share (ADS) in the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $1.29. However, the company had reported earnings of 30 cents in the year-ago quarter.
Revenues
ReneSola’s first-quarter net revenue of $156.6 million surpassed the Zacks Consensus Estimate of $139 million by 12.7%. However, revenues deteriorated 39.9% year over year.
Management attributes the sales decline to lower module ASP's and reduced product shipments to external customers.
Shipments
In the quarter under review, external module shipments were 266.8 megawatts (MW), down 23.9% year over year and grew 19.3% sequentially. Wafer shipments totalled 259.2 MW, down 26.2% year over year and 15.3% sequentially.
Operational Highlights
Gross margin of 1.1% in the quarter shrank 1600 basis points (bps) year over year and 100 bps sequentially. The sequential contraction was mainly due to lower module ASPs and annual maintenance of our polysilicon plant.
Operating expenses amounted to $19.5 million, down 39.6% from the prior-year quarter and 27.2% from the preceding quarter.
Operating loss during the quarter was $17.8 million. The company had reported operating income of $12.2 million in first-quarter 2016 and loss of $21.8 million in fourth-quarter 2016.
As of Mar 31, 2017, ReneSola had cash and cash equivalents plus restricted cash of $144.4 million compared with $133.2 million as of Dec 31, 2016.
Net cash outflow from operating activities in the first quarter was $33.8 million compared with cash outflow of $4.4 million in the year-ago period.
Long-term borrowings were $31.1 million as of Mar 31, 2017, up from $28.8 million as of Dec 31, 2016.
Guidance
The company expects second-quarter 2017 revenues of $180−$200 million with external wafer shipments in the range of 220 MW−240 MW and external module shipments in 230 MW−250 MW band.
For 2017, the company reiterated its revenue expectation in the range of $900−$1000 million.
Peer Releases
First Solar Inc. (FSLR - Free Report) reported first-quarter 2017 earnings of 25 cents a share. The Zacks Consensus Estimate was pegged at a loss of 13 cents. The reported number declined 84.9% from the prior-year figure of $1.66.
SunPower Corp. (SPWR - Free Report) reported first-quarter 2017 loss of 42 cents per share, narrower than the Zacks Consensus Estimate of loss of 66 cents. In the year-ago period, the company had posted loss of 42 cents.
JA Solar Holdings Co., Ltd. posted first-quarter 2017 adjusted earnings of 3 cents per diluted American Depositary Share (ADS). The Zacks Consensus Estimate was pegged at a loss of 2 cents.
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ReneSola (SOL) Q1 Loss Narrower than Expected, Revenues Down
ReneSola Ltd. (SOL - Free Report) reported a loss of $1.16 per American Depositary Share (ADS) in the first quarter of 2017, narrower than the Zacks Consensus Estimate of a loss of $1.29. However, the company had reported earnings of 30 cents in the year-ago quarter.
Revenues
ReneSola’s first-quarter net revenue of $156.6 million surpassed the Zacks Consensus Estimate of $139 million by 12.7%. However, revenues deteriorated 39.9% year over year.
Management attributes the sales decline to lower module ASP's and reduced product shipments to external customers.
Shipments
In the quarter under review, external module shipments were 266.8 megawatts (MW), down 23.9% year over year and grew 19.3% sequentially. Wafer shipments totalled 259.2 MW, down 26.2% year over year and 15.3% sequentially.
Operational Highlights
Gross margin of 1.1% in the quarter shrank 1600 basis points (bps) year over year and 100 bps sequentially. The sequential contraction was mainly due to lower module ASPs and annual maintenance of our polysilicon plant.
Operating expenses amounted to $19.5 million, down 39.6% from the prior-year quarter and 27.2% from the preceding quarter.
Operating loss during the quarter was $17.8 million. The company had reported operating income of $12.2 million in first-quarter 2016 and loss of $21.8 million in fourth-quarter 2016.
Renesola Ltd. Price, Consensus and EPS Surprise
Renesola Ltd. Price, Consensus and EPS Surprise | Renesola Ltd. Quote
Financial Condition
As of Mar 31, 2017, ReneSola had cash and cash equivalents plus restricted cash of $144.4 million compared with $133.2 million as of Dec 31, 2016.
Net cash outflow from operating activities in the first quarter was $33.8 million compared with cash outflow of $4.4 million in the year-ago period.
Long-term borrowings were $31.1 million as of Mar 31, 2017, up from $28.8 million as of Dec 31, 2016.
Guidance
The company expects second-quarter 2017 revenues of $180−$200 million with external wafer shipments in the range of 220 MW−240 MW and external module shipments in 230 MW−250 MW band.
For 2017, the company reiterated its revenue expectation in the range of $900−$1000 million.
Peer Releases
First Solar Inc. (FSLR - Free Report) reported first-quarter 2017 earnings of 25 cents a share. The Zacks Consensus Estimate was pegged at a loss of 13 cents. The reported number declined 84.9% from the prior-year figure of $1.66.
SunPower Corp. (SPWR - Free Report) reported first-quarter 2017 loss of 42 cents per share, narrower than the Zacks Consensus Estimate of loss of 66 cents. In the year-ago period, the company had posted loss of 42 cents.
JA Solar Holdings Co., Ltd. posted first-quarter 2017 adjusted earnings of 3 cents per diluted American Depositary Share (ADS). The Zacks Consensus Estimate was pegged at a loss of 2 cents.
Zacks Rank
ReneSola presently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
3 Top Picks to Ride the Hottest Tech Trend
Zacks just released a Special Report to guide you through a space that has already begun to transform our entire economy...
Last year, it was generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. Download Report with 3 Top Tech Stocks >>