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Emeren (SOL) Q4 Revenues Miss Estimates, Earnings Up Y/Y

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Emeren Group Ltd (SOL) reported fourth-quarter 2022 earnings per American Depositary Share of 8 cents. The figure improved from the year-ago quarter’s loss of 2 cents. The Zacks Consensus Estimate for fourth-quarter 2022 earnings was pegged at 8 cents per share.

Revenues

Emeren’s fourth-quarter net revenues of $40.8 million surged 79% year over year from $22.8 million. However, the reported figure lagged the Zacks Consensus Estimate of $47 million.

Projects

As of Dec 31, 2022, SOL had 252 megawatts (MW) of projects in operation. Of these, the company operates 60 MW in Europe, 24 MW in the United States and 168 MW in China.

In 2022, the company monetized approximately 192 MW of solar projects and grew the project pipeline to a record of 3.0 gigawatts (GW). Its solar storage pipeline increased to 1.5 GW.

Operational Highlights

Its operating expenses totaled $6.2 million in the fourth quarter, up 28.1% year over year. The gross profit in the quarter was $11.1 million compared with $7.2 million in the year-ago period.

The company’s operating income in the quarter amounted to $4.9 million against the operating loss of $1.4 million in the prior-year period.

Financial Condition

As of Dec 31, 2022, Emeren had cash and cash equivalents of $107.1 million compared with $254.1 million as of Dec 31, 2021.

The cash outflow from operating activities was $7.8 million as of Dec 31, 2022 against the cash inflow of $8.8 million as of Dec 31, 2021.

Guidance

For 2023, SOL expects revenues in the band of $140-$160 million, with an overall gross margin of 30%. The Zacks Consensus Estimate for 2023 revenues is pegged at $145.9 million, lower than the midpoint of the company’s expectation.

Zacks Rank

Emeren 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

Canadian Solar Inc. (CSIQ - Free Report) reported fourth-quarter 2022 earnings of $1.11 per share, beating the Zacks Consensus Estimate of 48 cents by 131.3%. The bottom line also surged a whopping 184.6% from the fourth-quarter 2021 reported figure.

For 2022, the company reported earnings of $3.44 per share compared with earnings of $1.46 in 2021. Earnings beat the Zacks Consensus Estimate of $2.74 by 25.5%.

This solar cell manufacturer’s total revenues of $1,976.1 million came in line with the Zacks Consensus Estimate. However, the top line improved a solid 47.1% from the $1,343.3 million reported in the fourth quarter of 2021, primarily due to an increase in module shipments.

First Solar, Inc. (FSLR - Free Report) reported a fourth-quarter 2022 loss of 7 cents per share, narrower than the Zacks Consensus Estimate of a loss of 18 cents. However, the bottom line declined significantly from the prior-year quarter’s earnings of $1.23 per share.

First Solar’s fourth-quarter net sales were $1,002.4 million, which surpassed the Zacks Consensus Estimate of $997 million by 0.5%. Also, the top line improved by 10.5% from the year-ago quarter’s $628.9 million, primarily due to increased module sales and the sale of the Luz del Norte project in Chile.

Enphase Energy, Inc. (ENPH - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.51 per share, which improved by a solid 106.8% from the 73 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of $1.27 by 18.9%.

Enphase Energy’s fourth-quarter revenues of $724.7 million beat the Zacks Consensus Estimate of $704 million by 2.9%. The top line soared 75.6% from the year-ago quarter’s $412.7 million, driven by the strong demand for its Enphase Energy Systems.


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