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ReneSola (SOL) Q3 Earnings Miss Estimates, Revenues Up Y/Y

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ReneSola Ltd (SOL - Free Report) reported third-quarter 2021 earnings of 2 cents per American Depositary Share (ADS) from continuing operations, which lagged the Zacks Consensus Estimate of 4 cents by 50%. The reported figure declined from the year-ago quarter’s earnings of 5 cents by 60%.

Revenues

ReneSola’s third-quarter net revenues of $15.5 million missed the Zacks Consensus Estimate of $20 million by 23%. However, the top line improved 59.4% year over year from $9.7 million.

Renesola Ltd. Price, Consensus and EPS Surprise

Renesola Ltd. Price, Consensus and EPS Surprise

Renesola Ltd. price-consensus-eps-surprise-chart | Renesola Ltd. Quote

Projects

As of Sep 30, 2021, ReneSola had 173 megawatts (MW) of projects in operation. Of these, the company operates 148.5 MW of rooftop projects in China and 24.1 MW in the United States.

As of Sep 30, 2021, the company completed 850 MW of projects. At the end of the third quarter of 2021, ReneSola had 1,841 MW of mid-to-late-stage projects in pipeline.

Operational Highlights

Operating expenses totaled $3.4 million in the third quarter, up 11.3% year over year.

Operating income in the quarter amounted to $2.7 million compared with the year-ago quarter’s operating income of $2.9 million.

Gross Profit in the quarter was $6.1 million, up 3.4% year over year. Gross margin contracted 2140 basis point, primarily due to remarkably high gross margins generated in the prior-year period.

Financial Condition

As of Sep 30, 2021, ReneSola had cash and cash equivalents of $275.4 million compared with $40.6 million as of Dec 31, 2020.

Operating cash outflow from continuing operations was $5.1 million as of Sep 30, 2021, compared with cash outflow of $1.9 million in the year-ago period.

Guidance

ReneSola expects fourth-quarter 2021 revenues of $21-$27 million, with an overall gross margin of 36-40%. For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $20.2 million, which lies lower than the mid-point of the company’s expectation.

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.

Recent Solar Releases

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The long-term earnings growth rate for ENPH is pegged at 38.47%. Impressively, shares of Enphase Energy have appreciated 74.9% in the last one year.

First Solar (FSLR - Free Report) reported third-quarter 2021 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 33.3%. Its third-quarter sales were $584 million, which lagged the Zacks Consensus Estimate by 16.5%.

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SolarEdge Technologies (SEDG - Free Report) reported third-quarter adjusted earnings of $1.45 per share, which outpaced the Zacks Consensus Estimate of $1.38 by 5.1%. SolarEdge’s revenues of $526.4 million in the third quarter missed the Zacks Consensus Estimate by 0.6%.

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