ReneSola Ltd. (SOL - Free Report) reported adjusted earnings of 9 cents per American Depositary Share (ADS) from continuing operations in fourth-quarter 2019, which beat the Zacks Consensus Estimate of 2 cents by a massive 350%.
The bottom line also improved when compared with loss of 3 cents that the company incurred in the fourth quarter of 2018.
For 2019, the company posted adjusted earnings per ADS of 35 cents, compared with 18 cents in the prior year.
ReneSola’s fourth-quarter net revenues of $26.5 million improved significantly when compared with $5.6 million in the year-ago quarter. The Zacks Consensus Estimate was pegged at $45 million.
Moreover, the company reported adjusted revenues of $27.8 million in the reported quarter.
The quarterly revenues exceeded the company’s projection of $20-$25 million. Revenues were primarily driven by sale of solar projects in Poland and Hungary.
As of Dec 31, 2019, ReneSola had 216 megawatts (MW) of rooftop projects in operation. Of this, the company operates 172 MW of rooftop projects in China, 24.1 MW in the United States, 15.4 MW in Romania and 4.3 MW in the U.K.
As of Dec 31, 2019, ReneSola had a pipeline of almost 0.7 gigawatts projects in various stages, down from prior year’s 1.4 GW. Of this, 417.4 MW are late-stage projects and 30 MW are under construction.
The company has completed 779 MW of projects.
The company generated gross margin of 26.9% compared with 24.6% in prior-year quarter.
Operating expenses totaled $20.4 million in fourth-quarter 2019. Operating expenses in the quarter under review included an impairment charge of $1.3 million on the fixed assets related to the expected lower sale price of power projects in China.
The company incurred operating loss of $13.3 million in the quarter, compared with $1.9 million in the year-ago quarter.
As of Dec 31, 2019, ReneSola had cash and cash equivalents of $24.3 million compared with $6.8 million as of Dec 31, 2018.
Long-term borrowings were $3.4 million as of Dec 31, 2019 compared with $41.4 million at the end of 2018.
ReneSola expects first-quarter 2020 revenues in the band of $30-$33 million. The Zacks Consensus Estimate for first-quarter revenues is pegged at $36.8 million, which is currently above the company’s projected guidance.
Gross margin for the quarter is expected in the range of 8-10%.
For 2020, the company anticipates revenues in the range of $80-$100 million, with an overall gross margin of 18-20%. The Zacks Consensus Estimate for 2020 revenues is pegged at $155.6 million, which is currently above the company’s projected guidance.
ReneSola currently carries a Zacks Rank #3 (Holds). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
First Solar (FSLR - Free Report) reported fourth-quarter 2019 adjusted earnings of $2.02 per share, which missed the Zacks Consensus Estimate of $2.79 by 27.6%.
Enphase Energy (ENPH - Free Report) reported fourth-quarter 2019 adjusted earnings of 39 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 18.2%.
SolarEdge Technologies (SEDG - Free Report) reported fourth-quarter 2019 adjusted earnings of $1.65 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 26.9%.
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