ReneSola Ltd
.
SOL
is set to report third-quarter 2020 results on Dec 1, after market close.
In the trailing four quarters, it came up with an earnings surprise of 185.56%, on average.
Let’s take a closer look at the factors influencing the company’s upcoming quarterly results.
Factors to Consider
ReneSola has been facing stiff challenges and project delays over the past few quarters due to the continued impacts of the COVID-19 pandemic. Consequently, during the second-quarter earnings call, the company announced its anticipation to witness some slowdown in customer activities for the remainder of 2020. This, in turn, can be expected to have had an adverse impact on the company’s third-quarter results.
In November, ReneSola released its preliminary results for the third quarter of 2020, wherein it expects to generate revenues toward the high end of the previously announced $8-$10 million guidance range. In line with this, the Zacks Consensus Estimate for third-quarter sales is pegged at $10 million, which indicates a massive 84.8% decline from the year-ago quarter’s reported figure.
Meanwhile, the company anticipates its gross margins to exceed 42% compared to the prior guidance of a 38-42% increase.
The company’s strong focus on prudent cost-control management is likely to have been a major factor in delivering robust bottom-line results. Moreover, the completion and the commencement of commercial operation of a 21.05-MWp portfolio of community solar projects in Minnesota, during August, is likely to have favorably contributed to the third-quarter bottom-line results.
This might have encouraged the company to expect its third-quarter results to reflect at least $2 million in net profits, as stated in its preliminary results. We may expect the soon-to-be-reported quarterly results to duly represent solid bottom-line figures, based on such profit projections.
Earnings Whispers
Our proven model does not predict an earnings beat for ReneSola this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.
Earnings ESP
: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Zacks Rank
: ReneSola currently carries a Zacks Rank #3. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Renesola Ltd. Price and EPS Surprise
Some Q3 Solar Releases
Enphase Energy
ENPH
reported third-quarter 2020 adjusted earnings of 20 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 25%.
First Solar
FSLR
reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.
SunPower Corp
.
SPWR
incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.
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