) reported loss per American Depositary Share (ADS) of 24 cents
per share for the second quarter of 2013, narrower than the Zacks
Consensus Estimate of a loss of 26 cents per ADS. The
second-quarter loss also narrowed from the year-ago quarterly
loss of 40 cents per ADS and the prior quarter loss of 45 cents
per ADS. The results reflect the company's focus on improving
JA SOLAR HOLDGS (JASO): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
LDK SOLAR CO (LDK): Free Stock Analysis
RENESOLA LT-ADR (SOL): Free Stock Analysis
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Net revenues for the quarter rose to $377.4 million from $233.0
million in the prior-year quarter, supported by higher selling
prices and increased shipments. Reported quarterly revenues
also beat the Zacks Consensus Estimate of $367.0 million. Also,
the figure was above the prior quarter revenues of $284.2
During the quarter, total solar wafer and module shipments were
849.3 megawatt ("MW"), up 70.8% year over year and 28.3%
Panel prices for solar wafers increased by 1 cent to 23 cents per
watt and prices for modules increased 2 cents to 63 cents per
share per watt, sequentially.
Operating expenses were up 22.6% year over year due to a
significant increase in research and development ("R&D")
expenses. Operating loss during the quarter was $16.6 million as
compared to operating losses of $34.6 million in second quarter
of 2012 and $33.4 million in first quarter of 2013.
As of Jun 30, 2013, ReneSola had cash and cash equivalents plus
restricted cash of $405.8 million, compared with $442.7 million
as of Mar 31, 2013. Net cash inflow from operating activities was
$65.5 million compared with net cash inflow from operating
activities of $4.2 million in first quarter of 2013. Total debt
was $909.9 million compared with $958.6 million as of Mar 31,
ReneSola expects its third-quarter revenue to be in the range of
$360 million to $380 million. It also foresees gross margins to
turn positive in the third quarter, between 7% and 9%.
The company expects third quarter 2013 solar wafer and module
shipments between 730 MW and 750 MW, with solar module shipments
in a range of 430 MW to 450 MW.
Full-year 2013 solar wafer and module shipments are forecast to
be between 2.8 gigawatts (GW) and 3.0 GW, with solar module
shipments of 1.6 GW to 1.8 GW.
At the Peers
JA Solar Holdings Co. Ltd.
) announced a loss of 58 cents per ADS in the second quarter of
2013, narrower than the Zacks Consensus Estimate of a loss of 62
LDK Solar Co. Ltd.
) reported second quarter of fiscal 2013 loss per ADS of 97
cents, wider than the Zacks Consensus Estimate of a loss of 92
cents per ADS. However, quarterly loss narrowed from the year-ago
loss of $2.00 per ADS.
A few days back,
JinkoSolar Holding Co. Ltd.
) reported adjusted earnings per ADS of 56 cents, well above the
Zacks Consensus Estimate of a loss per ADS of 7 cents, a diluted
loss per ADS of 56 cents in the first quarter of 2013 as well as
a diluted loss per ADS of $2.11 in the second quarter of 2012.
In spite of ReneSola reporting in the red this quarter, the
narrower-than-expected loss is encouraging. Also, the top line
succeeded in beating the Zacks Consensus Estimate.
Despite a challenging macro environment and a competitive solar
industry, the company continued to make substantial progress and
exceeded its shipment volume guidance. In order to build its
brand image, the company also introduced its proprietary
technology to customers across multiple international markets.
With the company's focus on improving operating efficiencies,
multiple contracts and agreements, generation of material cost
savings and introduction of innovative products like the power
conserving microinverter Replus, we believe that the company is
well positioned. The company presently retains a short-term Zacks
Rank #2 (Buy).