ReneSola Ltd. (SOL - Free Report) incurred a loss of $1.57 per American Depositary Share (ADS) in the second quarter of 2017, wider than the Zacks Consensus Estimate of a loss of 76 cents. However, the company had reported earnings of 25 cents in the year-ago quarter.
ReneSola’s second-quarter net revenue of $151.6 million missed the Zacks Consensus Estimate of $181 million by 16.1%. Also, revenues declined 39.4% year over year.
Gross margin of 2.7% in the quarter contracted 1380 basis points (bps) year over year but expanded 160 bps, sequentially.
Operating expenses amounted to $24.5 million, up 39.6% from the prior-year quarter but down 25.6% from the preceding quarter.
Operating loss during the quarter was $20.4 million. The company had reported operating income of $6.4 million in second-quarter 2016 and witnessed loss of $17.8 million in the previous quarter.
As of Jun 30, ReneSola had cash and cash equivalents plus restricted cash of $28.6 million compared with $133.2 million as of Dec 31, 2016.
Net cash outflow from operating activities in the first six months of 2017 was $38.6 million compared with cash outflow of $13.5 million in the year-ago period.
Long-term borrowingswere $30.3 million as of Jun 30, up from $28.8 million as of Dec 31, 2016.
ReneSola projects third-quarter 2017 revenues in the band of $40−$45 million with overall gross margin in 15%-20% range. Also, the company expects to connect 20 MW to 30 MW of projects during the quarter.
On Sep25, ReneSola entered into a definitive share repurchase and subscription agreementwith Mr. Xianshou Li, the company's chairman and chief executive officer, for the sale of the company's manufacturing (including polysilicon, solar wafer, solar cell and solar module manufacturing) and LEDdistribution businesses.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2017 earnings of 64 cents a share. The Zacks Consensus Estimate was pegged at a loss of 4 cents.
Canadian Solar Inc. (CSIQ - Free Report) witnessed second-quarter 2017 adjusted loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 16 cents.
SunPower Corp. (SPWR - Free Report) incurred second-quarter 2017 loss of 39 cents per share, narrower than the Zacks Consensus Estimate of a loss of 63 cents.
ReneSola 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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