Shares of
ReneSola Ltd
.
SOL
increase 16.4% to reach $8.86 on May 26, reflecting investors’ optimism following its first-quarter results.
The company reported earnings of 5 cents per American Depositary Share (ADS) from continuing operations in first-quarter 2021 against the Zacks Consensus Estimate of a loss of 2 cents. The reported figure also improved from the year-ago quarter’s loss of 4 cents.
Notably, earnings reported in the quarter can be attributed to the company’s improved top-line performance.
Revenues
ReneSola’s first-quarter net revenues of $22.8 million surpassed the Zacks Consensus Estimate of $19 million by 13.9%. The top line, however, increased 7.5% year over year from $21.2 million.
Projects
As of Mar 31, 2021, ReneSola had 172 megawatts (MW) of rooftop projects in operation. Of these, the company operates 148 MW of rooftop projects in China and 24 MW in the United States.
As of Mar 31, 2021, the company completed 850 MW of projects. At the end of the first quarter of 2021, ReneSola had 1,312 MW of late-stage projects. Of these, 6 MW are under construction.
Operational Highlights
Operating expenses totaled $2.72 million during the first quarter, up 8.6% year over year.
Operating income in the quarter came in at $4.09 million against the year-ago quarter’s operating loss of $1.14 million.
Renesola Ltd. Price, Consensus and EPS Surprise
Financial Condition
As of Mar 31, 2021, ReneSola had cash and cash equivalents of $301 million compared with $40.6 million as of Dec 31, 2020.
Operating cash outflow from continuing operations summed $10.4 million as of Mar 31, 2021, compared with cash outflow of $9.9 million in the year-ago period.
Guidance
ReneSola expects second-quarter 2021 revenues of $19-$22 million, with an overall gross margin of 36-39%. For second-quarter revenues, the Zacks Consensus Estimate is pegged at $23.2 million, higher than the company’s anticipated view.
For 2021, the company projects revenues of $90-$100 million. Overall gross margin is expected to be more than 25%.
Zacks Rank
ReneSola currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
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