) in the fourth quarter of 2012 reported adjusted loss per
American Depositary Share (ADS) of 29 cents per share, beating
the Zacks Consensus Estimate of 37 cents loss per ADS. Numbers
however were short of the year-ago quarterly loss of 21 cents per
For full year 2012 the company digested an adjusted loss per
ADS of $2.36, falling short of both the Zacks Consensus Estimate
of $2.15 per ADS loss and year-ago earnings per ADS of 0.4
Net revenues for the quarter rose to $306.5 million from
$187.7 million in the prior-year quarter, as a result of a
significant increase in solar module shipments, particularly to
China. Reported quarterly revenue also beat the Zacks Consensus
Estimate of $252 million.
Net revenues for full year 2012 fell to $969.1 million from
$985.3 million in 2011. However this came above the Zacks
Consensus Estimate of $845 million.
Total solar product shipments in the fourth quarter of 2012
were 713.2 megawatts, an increase of 33.9% from 532.8 megawatts
in the third quarter of 2012. The sequential increase in solar
product shipments was mainly the result of increased demand for
the company's solar modules across a number of geographic
regions, particularly China, as well as the result of seasonally
strong year-end demand and the increasing competitiveness of
solar power as a power source.
Overall, ReneSola recorded a net loss of $49.9 million
compared with a net loss of $36.7 million in the year-ago
As of Dec 31, 2012, ReneSola had
cash and cash equivalents plus
restricted cash of $268.1 million, compared
with $335.2 million at the end of the third quarter
of 2012. Net cash inflow from operating activities was
$25.8 million in the fourth quarter 2012, compared to net cash
outflow of $46.0 million in the third quarter of 2012. Total debt
was $790.2 million at the end of 2012, compared with $850.3
million at the end of the third quarter of 2012. Short-term
borrowings were $733.6 million at the end of 2012, compared with
$715.8 million at the end of the third quarter of 2012.
For the first quarter of 2013, the company expects total solar
wafer and module shipments in the range of 660 MW to 680 MW.
Revenues are expected in the range of $260 million to $270
million and gross margin is expected to be positive.
For the full year 2013, the company expects total solar wafer
and module shipments in the range of 2.7 GW to 2.9 GW.
Based out of China, ReneSola is a leading global manufacturer
of solar wafers and a producer of solar power products.
Capitalizing on proprietary technologies, economies of scale,
high production quality, technological innovations and know-how,
and its in-house virgin polysilicon and solar cell and module
production capabilities, ReneSola provides its customers with
solar wafer products and processing services. The company
possesses a global network of suppliers and customers.
ReneSola introduced the high-efficiency second generation
Virtus II wafers which utilize a new in-house proprietary Virtus
A++ manufacturing process, alleviating the need for crystalline
seeds. The Virtus II modules' use of the Virtus A++ manufacturing
process produces high-efficiency Virtus A++ wafers with lower
light-induced degradation and lower processing cost.
Additionally, the company's newly launched microinverter, Micro
Replus, formally obtained a Certificate of Approval from SAA
Approvals, a third-party certification body accredited to issue
Certificates of Approval for electrical equipment that complies
with the safety requirements of the applicable Australian
standard. ReneSola has also begun research on small-scale storage
Going forward, ReneSola expects to continue to reduce its
solar module manufacturing costs through improvements in its
manufacturing methods and reduction in material costs. The
company presently retains a short-term Zacks Rank #3 (Hold).
However, ReneSola's fortunes have been impacted by the
industry-wide oversupply glut leading to sharply falling Average
Selling Prices, tepid module demand in Europe, and rising
competition in the market. As a result, among major solar
Canadian Solar Inc.
) holds a short-term Zacks Rank #2 (Buy). Of the rest of the big
Solar Power, Inc.
First Solar Inc.
), all hold a Zacks Rank #3 (Hold).
CANADIAN SOLAR (CSIQ): Free Stock Analysis
FIRST SOLAR INC (FSLR): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
SOLAR POWER INC (SOPW): Get Free Report
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