Emeren (SOL) Reports Q3 Loss, Misses Revenue Estimates

Emeren Group Ltd SOL reported a loss per American Depositary Share (“ADS”) of 17 cents for the third quarter of 2023. The figure indicates a further deterioration from the loss of 2 cents per ADS reported in the year-ago quarter.

The Zacks Consensus Estimate was pegged at earnings of a cent per share.

Revenues

Emeren’s third-quarter net revenues of $13.9 million decreased 42% from $23.9 million reported in the year-ago period. The reported figure also lagged the Zacks Consensus Estimate of $28 million by 50.7%.

Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise

Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise

Emeren Group Ltd. Sponsored ADR price-consensus-eps-surprise-chart | Emeren Group Ltd. Sponsored ADR Quote

Projects

As of Sep 30, 2023, SOL had 240 megawatts (MW) of projects in operation. Of these, the company operates 60 MW in Europe, 24 MW in the United States and 156 MW in China.

During the third quarter, Emeren continued to increase its advanced and early-stage project pipeline to 7.8 megawatt-hours (MWh). As of Sep 30, 2023, the company had a storage pipeline of 17.3 MWh in the United States, Europe and China at different stages of development.

Operational Highlights

Its operating expenses amounted to $9.6 million in the reported quarter, up 174.2% year over year. The year-over-year increase resulted primarily from one-time expenses from impairment and the write-off of assets of several pending projects. The gross profit in the quarter came in at $5.7 million compared with $4.5 million in the year-ago period.

The company recorded an operating loss of $4 million against a reported income of $1 million in the prior-year quarter.

Financial Condition

As of Sep 30, 2023, Emeren had cash and cash equivalents of $59.2 million compared with $107.1 million as of Dec 31, 2022.

The cash outflow from operating activities totaled $4.6 million as of Sep 30, 2023 compared with $7.7 million as of Jun 30, 2022.

Guidance

For the fourth quarter of 2023, Emeren projects revenues in the range of $3-$4 million. It also expects a gross margin of 21-25% for the same period.

For 2023, SOL now expects revenues in the range of $110-$113 million. The gross margin for 2023 is expected in the band of 25%-28%.

Zacks Rank

Emeren currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

Enphase Energy, Inc. ENPH reported third-quarter 2023 adjusted earnings of $1.02 per share, which highlights an 18.4% decline from $1.25 per share reported in the prior-year quarter. The bottom line came in line with the Zacks Consensus Estimate.

Enphase Energy’s third-quarter revenues of $551.1 million missed the Zacks Consensus Estimate of $562 million by 1.9%. The top line also declined 13.2% from the prior-year quarter’s reported figure of $634.7 million.

JinkoSolar Holding Co. Ltd. JKS reported third-quarter 2023 earnings per ADS of $2.59, beating the Zacks Consensus Estimate of $1.96 by 32.1%. The company reported earnings per ADS of 59 cents in the year-ago quarter.

In the quarter under review, JinkoSolar’s total revenues of $4,363.2 million surpassed the Zacks Consensus Estimate of $4,224 million by 3.3%. The top line surged 63.1% on a year-over-year basis, driven by an increase in solar module shipments.

First Solar, Inc. FSLR reported third-quarter 2023 earnings of $2.50 per share compared to the prior-year quarter’s loss of 46 cents per share. Earnings beat the Zacks Consensus Estimate of $2.09 per share by 19.6%.

First Solar’s third-quarter net sales were $801.1 million, which lagged the Zacks Consensus Estimate of $901 million by 11.1%. However, the top line improved by 27.4% from the year-ago quarter’s $628.9 million.

Zacks Names #1 Semiconductor Stock

It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Emeren Group Ltd. Sponsored ADR (SOL) : Free Stock Analysis Report

JinkoSolar Holding Company Limited (JKS) : Free Stock Analysis Report

First Solar, Inc. (FSLR) : Free Stock Analysis Report

Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.