| ReneSola Q2 Loss Narrower than Expected, Revenues Beat | |
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ReneSola Ltd. SOL reported adjusted loss of 2 cents per American Depositary Share (“ADS”) in the second quarter of 2015, narrower than the Zacks Consensus Estimate of a loss of 17 cents. In the year-ago quarter, the company had reported earnings of 1 cent per ADS. Sequentially, the reported figure was narrower than a loss of 18 cents in the last quarter due to an increase in wafer shipments.
In the second quarter of 2015, ReneSola reported net foreign exchange loss of $2.6 million, including a loss of $8.8 million from foreign exchange forward contracts.
Revenues
ReneSola’s net revenue of $268.4 million surpassed the Zacks Consensus Estimate of $260 million by 3.2%. Reported revenues however declined 30.7% from $387.1 million in the prior-year quarter and 23.2% from $349 million in the preceding quarter. The decrease was due to the negative impact of lower module shipments in the reported quarter.
The market reacted negatively to second-quarter results, with shares edging down 0.85% to $1.16 at the close of the trading session on Aug 25.
Shipments
In the quarter under review, total solar wafer and module shipments were 603.7 megawatts (“MW”), down 13.5% year over year and 12.7% sequentially. Module shipments were 322 MW, down 35.4% year over year and 35.1% sequentially. Wafer shipments, however, were 281.7 MW, up 41.1% year over year and 44.4% sequentially. The quarterly decrease in module shipments was due to a planned shift to the downstream business. Wafer shipments, on the other hand, were driven by temporary business opportunities.
Geographic breakdown of ReneSola’s module shipments in the second quarter are as follows: Japan represented 36.4% of total shipments, China 25.3%, Others 18.8%, Europe 13.7%, , and the U.S. contributed 5.8%.
Operational Highlights
Gross margin of 16.5% for the quarter increased from 14.7% a year ago, and 10.5% in the previous quarter primarily on the back of reduction in material and processing costs, and the positive impact of the sale of a solar project.
Operating expenses decreased 26.8% year over year and 26.6% sequentially to $33.9 million primarily due to lower sales and marketing expenses associated with lower module shipments.
Operating income during the quarter was $10.5 million, compared with $10.6 million in the year-ago period and loss of $9.5 million in first-quarter 2015.
Financial Condition
As of Jun 30, 2015, ReneSola had cash and cash equivalents plus restricted cash of $185.1 million, compared with $221.7 million as of Dec 31, 2014.
Net cash outflow from operating activities was $11.6 million in second-quarter 2015 compared to an outflow of $40.6 million in the year-ago quarter.
Long-term borrowings was $41.1 million at the end of second-quarter 2015 compared with $43.5 million as of Dec 31, 2014.
Guidance
The company expects third-quarter 2015 revenues in the range of $330 million to $340 million and gross margin in the range of 15% to 16%.
Peer Releases
Canadian Solar Inc. CSIQ reported second-quarter earnings of 31 cents per share, comfortably beating the Zacks Consensus Estimate of 13 cents by an impressive 138.5%.
Trina Solar Ltd TSL reported earnings of 42 cents per ADS in the second quarter of 2015, beating the Zacks Consensus Estimate of 24 cents by 75%.
JinkoSolar Holding Co. JKS reported second-quarter non-GAAP adjusted earnings of $1.04 per ADS in the second quarter of 2015, beating the Zacks Consensus Estimate of 83 cents by 25.3%.
Zacks Rank
ReneSola presently carries a Zacks Rank #3 (Hold).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TRINA SOLAR LTD (TSL): Free Stock Analysis Report CANADIAN SOLAR (CSIQ): Free Stock Analysis Report RENESOLA LT-ADR (SOL): Free Stock Analysis Report JINKOSOLAR HLDG (JKS): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research
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Trina Solar Ltd.
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CODE : TSL |
ISIN : US89628E1047 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Trina Solar is based in China. Trina Solar is listed in United States of America. Its market capitalisation is US$ 2.5 billions as of today (€ 2.3 billions). Its stock quote reached its highest recent level on April 22, 2016 at US$ 9.99, and its lowest recent point on January 16, 2018 at US$ 0.01. Trina Solar has 449 180 000 shares outstanding. |