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ReneSola (SOL) Q1 Earnings in Line, Revenues Top Estimates

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ReneSola Ltd. (SOL - Free Report) reported earnings of a penny, per American Depositary Share (ADS) in the first quarter of 2018, which came in line with the Zacks Consensus Estimate. The company had reported a loss of 2 cents per ADS in the year-ago quarter.

Revenues

ReneSola’s first-quarter net revenue of $44.8 million surpassed the Zacks Consensus Estimate of $30 million by 49.3%. Moreover, revenues reflected a massive improvement from $0.2 million in first quarter 2017.

The upside was driven mainly from sale of utility solar projects in the United Kingdom, DG projects in China and provision of EPC services.

Project Details

As of Mar 31, 2018, ReneSola owns over 193 megawatt (MW) of rooftop projects in operation, concentrated in the eastern provinces of China, and has over 27 MW of rooftop projects under construction. The company currently has 10.4 MW of completed projects, which are currently in sale process.

As of Mar 31, 2018, the company had a pipeline of more than 1.1 gigawatts (GW) of projects in various stages, of which 748 MW are late-stage projects. Of these late-stage projects, 156 MW projects are under construction.

Operational Highlights

Gross profit was $8.4 million in the first quarter, compared to $0.2 million of gross loss in first quarter 2017.  

Operating expenses totaled $2.5 million, up 100% from the prior year quarter.

Operating income in the quarter came in at $5.9 million compared to the operating loss of $1.5 million registered in the year-ago quarter. The company had reported operating income of $4.9 million in the fourth quarter of 2017.

Renesola Ltd. Price, Consensus and EPS Surprise

Renesola Ltd. Price, Consensus and EPS Surprise | Renesola Ltd. Quote

Financial Condition

As of Mar 31, 2018, ReneSola had cash and cash equivalents plus restricted cash of $10.9 million compared with $13.4 million as of Dec 31, 2017.

Long-term borrowings were $32.7 million as of Mar 31, 2018, marginally up from $32.5 million as of Dec 31, 2017.

Guidance

ReneSola expects second-quarter 2018 revenues to be in the band of $20−$30 million and overall gross margin to be in the range of 20-25%. During the second quarter of 2018, the company expects to connect 15 - 20 MW of DG projects in China and monetize 6.8 MW projects in international markets.

For 2018, the company expects its revenues to be in the range of $130−$140 million.

Other Solar Releases

Canadian Solar Inc. (CSIQ - Free Report) reported first-quarter 2018 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 38 cents by 89.5%. The company carries a Zacks Rank #3 (Hold).

SunPower Corp. (SPWR - Free Report) incurred first-quarter 2018 adjusted loss of 20 cents per share, which came in narrower than the Zacks Consensus Estimate of loss of 34 cents. The company carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

First Solar Inc. (FSLR - Free Report) reported first-quarter 2018 earnings of 78 cents per share, surpassing the Zacks Consensus Estimate of a loss of 5 cents, by a huge margin. The company carries a Zacks Rank #3.

Zacks Rank

ReneSola carries a Zacks Rank #4 (Sell).

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