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ReneSola (SOL) Swings into Earnings in Q3, Gives Q4 View

ReneSola Ltd.SOL reported earnings of 8 cents per American Depositary Share ("ADS") in the third quarter of 2015. The Zacks Consensus Estimate was a loss of 5 cents. The company had reported a loss of 1 cent per ADS in both the preceding and year-ago quarters. The upbeat performance was due to an increase in wafer as well as module shipments. ReneSola also monetized its projects in the U.K. and Japan resulting in higher gross profit and operating income.

Renesola Ltd (SOL) - Earnings Surprise | FindTheCompany

Revenues

ReneSola's net revenues of $368.2 million surpassed the Zacks Consensus Estimate of $335 million by 9.9%. Though reported revenues declined 1.1% from the prior-year quarter they were up 37.2% from the preceding quarter. The upturn was due to increases across the company's product lines.

Shipments

In the quarter under review, total solar wafer and module shipments were 747 megawatts ("MW"), up 12.5% year over year and 23.7% sequentially. Module shipments were 405.5 MW, down 12.3% year over year but up 25.9% sequentially. Wafer shipments, however, were 341.6 MW, up 69.3% year over year and 21.3% sequentially.

Operational Highlights

Gross margin of 16.1% in the quarter increased from 15.3% a year ago, but declined from 16.5% in the previous quarter.

Operating expenses decreased 1.4% year over year but shot up 41.3% sequentially to $47.9 million.

Operating income during the quarter was $11.4 million, compared with $8.5 million in the year-ago period and $10.5 million in second-quarter 2015.

Financial Condition

As of Sep 30, 2015, ReneSola had cash and cash equivalents plus restricted cash of $233 million, compared with $221.7 million as of Dec 31, 2014.

Net cash from operating activities in the first nine months of 2015 was $39.9 million in third-quarter 2015 as against an outflow of $163.6 million in the year-ago period.

Long-term borrowings were $39 million at the end of third-quarter 2015 compared with $43.5 million as of Dec 31, 2014.

Guidance

The company expects fourth-quarter 2015 revenues in the range of $275 million to $295 million and gross margin in the 17% to 18% band.

Peer Releases

JA Solar Holdings Co. Ltd. JASO posted third-quarter 2015 adjusted earnings of 68 cents per diluted American Depositary Share (ADS), surpassing the Zacks Consensus Estimate of 29 cents by an impressive 134.5% and the year-ago figure by 240%.

First Solar Inc. FSLR reported adjusted third-quarter 2015 earnings of $3.38 per share, which swept past the Zacks Consensus Estimate of $1.55 by 118.1%.

Canadian Solar Inc. CSIQ reported third-quarter earnings of 79 cents per share, comfortably beating the Zacks Consensus Estimate of 27 cents by 192.6%.

Zacks Rank

ReneSola presently carries a Zacks Rank #2 (Buy).

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


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

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