ReneSola Ltd. reported loss of 2 cents per American Depositary Share (ADS) for the second quarter of 2018, while the Zacks Consensus Estimate was pegged at earnings of 3 cents per share. The company had reported a loss of $1.57 per ADS in the year-ago quarter.
ReneSola’s second-quarter net revenues of $27.8 million surpassed the Zacks Consensus Estimate of $26 million by 9.1%. Moreover, revenues reflected a massive improvement from $1.6 million in second-quarter 2017. Revenues also came above the mid-point of the company’s top line expectation range of $20-$30 million for the reported quarter.
The year-over-year upside was driven mainly by the sale of utility solar projects in North Carolina and sale of electricity and EPC services for distributed generation projects in China.
As of Jun 30, 2018, ReneSola owned more than 226.5 megawatt (MW) of rooftop projects in operation, concentrated in the eastern provinces of China. It has over 134 MW of rooftop projects under construction. The company had 24.4 MW of completed projects up for sale as of Jun 30.
The company had a pipeline of more than 1.51 gigawatts (GW) of projects in various stages, of which 670.2 MW are late-stage projects as of Jun 30. Of these, late-stage projects of134 MW are under construction.
Gross profit was $8.2 million in the reported quarter compared with$1.1 million in second quarter 2017.
Operating expenses totaled $2.3 million, up 24.7% from the prior-year quarter.
Operating income in the quarter came in at $5.9 million, which came in line with the year-ago quarter’s figure.
As of Jun 30, 2018, ReneSola had cash and cash equivalents plus restricted cash of $26.4 million compared with $13.4 million as of Dec 31, 2017.
Long-term borrowings were $72.7 million as of Jun 30, up from $32.5 million as of Dec 31, 2017.
ReneSola expects third-quarter 2018 revenues to be in the band of $15−$20 million and overall gross margin to be in the range of 35-40%. During the second quarter of 2018, the company expects to monetize 13 MW of projects.
For 2018, the company continues to expect revenues in the range of $130−$140 million.
Other Solar Releases
Canadian Solar Inc. (CSIQ - Free Report) reported second-quarter 2018 earnings of 26 cents per share, missing the Zacks Consensus Estimate of 33 cents by 21.2%.
JinkoSolar Holding Co., Ltd. (JKS - Free Report) reported second-quarter 2018 earnings per American Depositary Share (ADS) of 38 cents, missing the Zacks Consensus Estimate of 50 cents by 24.0%.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2018 loss of 46 cents a share. The Zacks Consensus Estimate was pegged at a loss of a penny.
ReneSola currently 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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