Emeren Group Ltd.’s SOL share price dropped 4.5% to reach $1.91 on Nov. 15, following its latest quarterly release.
Emeren reported an income per American Depositary Share of nine cents for the third quarter of 2024, which came in line with the Zacks Consensus Estimate. The figure reflects an improvement from the year-ago quarter’s loss of 17 cents per share.
SOL’s Revenues
Emeren’s net revenues of $12.9 million declined 7.2% from $13.9 million reported in the year-ago period. The year-over-year deterioration can be attributed to delayed project closings pending government approvals.
Moreover, the reported figure missed the Zacks Consensus Estimate of $26 million by 51%.
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
Emeren’s Projects
As of Sept. 30, 2024, SOL had 272 megawatts (MW) of solar projects in operation. Of these, the company operated 82 MW in Europe, 24 MW in the United States and 166 MW in China.
During the third quarter, Emeren increased its advanced and early-stage solar development project pipeline to 7,684 MW.
Its advanced and early-stage solar storage project pipeline was 7,838 MW at the end of September 2024.
Emeren’s Operational Highlights
Emeren’s operating expenses amounted to $3.5 million, down 63.5% year over year on account of lower general and administrative expenses.
The gross profit was $5.6 million compared with $5.7 million in the year-ago period.
The company reported an operating income of $2.1 million against an operating loss of $4 million incurred in the prior-year quarter.
Financial Condition of SOL
As of Sept. 30, 2024, Emeren had cash and cash equivalents of $35.8 million compared with $70.2 million as of Dec. 31, 2023.
The company’s long-term debt totaled $25.3 million as of the same date, up from $22.7 million as of Dec. 31, 2023.
The cash outflow from operating activities totaled $14.6 million as of Sept. 30 compared with $30.7 million in the same period last year.
Guidance for SOL
For the fourth quarter of 2024, Emeren projects revenues to be in the range of $40-$45 million. It also expects the gross margin to be in the band of 20-25%.
For 2024, SOL updated its guidance. The company now expects to generate revenues in the range of $97-$102 million, which is significantly down from the prior guidance of $150-$160 million. The Zacks Consensus Estimate for sales is pegged at $155 million, which lies above the company’s new guided range.
The gross margin is still expected to be 30%.
SOL’s Zacks Rank
Emeren currently carries a Zacks Rank #2 (Buy). 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 adjusted earnings of 65 cents per share, which reflected a 36.3% decline from $1.02 reported in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 78 cents per share by 16.7%.
Enphase Energy’s revenues of $380.9 million missed the consensus estimate of $391 million by 2.6%. The top line also declined 30.9% from the prior-year quarter’s figure of $551.1 million.
First Solar, Inc. FSLR reported third-quarter 2024 earnings of $2.91 per share, which were up 16.4% from the prior-year quarter’s figure of $2.50. However, the bottom line missed the Zacks Consensus Estimate of $3.10 per share by 6.1%.
First Solar’s net sales were $887.7 million, which missed the consensus estimate of $1.07 billion by 17%. The top line, however, improved 10.8% from the year-ago quarter’s $801.1 million.
Nextracker NXT reported second-quarter fiscal 2025 earnings of $0.97 per share, which beat the Zacks Consensus Estimate of $0.64. This compares with earnings of $0.65 per share a year ago.
Nextracker’s revenues were $635.57 million, which surpassed the consensus estimate by 4.26%. This compares with year-ago revenues of $573.36 million.
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