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Emeren Group (SOL) Q2 Earnings Miss Estimates, Revenues Top
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Emeren Group Ltd’s (SOL - Free Report) share price increased 5.9% to reach $1.96 on Aug 21 following the company’s latest quarterly release.
Emeren reported an income per American Depositary Share (“ADS”) of a penny for the second quarter of 2024, which missed the Zacks Consensus Estimate of 7 cents by 85.7%. The figure also reflects a deterioration of 92.9% from the year-ago quarter’s reported figure of 14 cents per share.
Revenues
Emeren’s second-quarter net revenues of $30.1 million declined 11.2% from $33.9 million reported in the year-ago period. However, the reported figure surpassed the Zacks Consensus Estimate of $23 million by 30.9%.
Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise
As of Jun 30, 2024, SOL had 264 megawatts (MW) of projects in operation. Of these, the company operates 80 MW in Europe, 24 MW in the United States and 160 MW in China.
During the second quarter, Emeren continued to increase its advanced and early-stage solar development project pipeline to 7,844 MW.
Operational Highlights
Emeren’s operating expenses amounted to $6.4 million in the reported quarter, down 15.7% year over year.
The gross profit in the quarter came in at $9.4 million compared with $12.7 million in the year-ago period.
The company reported an operating income of $3 million compared with an operating income of $5 million in the prior-year quarter.
Financial Condition
As of Jun 30, 2024, Emeren had cash and cash equivalents of $50.8 million compared with $70.2 million as of Dec 31, 2023.
The company’s long-term debt totaled $22.9 million as of Jun 30, 2024, up from $22.7 million as of Dec 31, 2023.
The cash outflow from operating activities totaled $9 million as of Jun 30, 2024 compared with the cash outflow of $26.1 million in the same period last year.
Guidance
For the third quarter of 2024, Emeren projects revenues in the range of $25-$28 million. It also expects a gross margin of 35-38% for the same period. The Zacks Consensus Estimate for 2024 sales is pegged at $27.5 million, up from the midpoint of the guidance range.
For 2024, SOL reaffirmed its guidance. The company still expects to generate revenues in the range of $150-$160 million. The Zacks Consensus Estimate for 2024 earnings, pegged at $150.3 million, lies near the lower end of the company’s guidance.
Emeren also continues to expect its earnings per ADS to be 43 cents during 2024. The Zacks Consensus Estimate for 2024 earnings, pegged at 27 cents, is much lower than the company’s guidance.
The gross margin for 2024 is still expected to be 30%.
Zacks Rank
Emeren Group currently carries a Zacks Rank #4 (Sell).
First Solar, Inc. (FSLR - Free Report) reported second-quarter 2024 earnings of $3.25 per share, up a solid 104.4% from the prior-year quarter’s reported earnings of $1.59 per share. The bottom line also beat the Zacks Consensus Estimate of $2.67 by 21.7%.
First Solar’s second-quarter net sales were $1.01 billion, which surpassed the Zacks Consensus Estimate of $0.95 billion by 6.8%. The top line also improved 24.6% from the year-ago quarter’s $0.81 billion.
Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2024 adjusted earnings of 43 cents per share, highlighting a 70.7% decline from $1.47 reported in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 49 cents per share by 12.2%.
Enphase Energy’s second-quarter revenues of $303.5 million missed the Zacks Consensus Estimate of $314 million by 1.8%. The top line also declined 57.3% from the prior-year quarter’s reported figure of $711.1 million.
Nextracker Inc. (NXT - Free Report) reported first-quarter fiscal 2025 adjusted earnings of 93 cents per share, highlighting a 93.8% rise from 48 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 66 cents per share by 40.9%.
NXT’s first-quarter revenues of $719.9 million beat the Zacks Consensus Estimate of $618 million by 16.5%. The top line also increased 50.1% from the prior-year quarter’s reported figure of $479.5 million.
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Emeren Group (SOL) Q2 Earnings Miss Estimates, Revenues Top
Emeren Group Ltd’s (SOL - Free Report) share price increased 5.9% to reach $1.96 on Aug 21 following the company’s latest quarterly release.
Emeren reported an income per American Depositary Share (“ADS”) of a penny for the second quarter of 2024, which missed the Zacks Consensus Estimate of 7 cents by 85.7%. The figure also reflects a deterioration of 92.9% from the year-ago quarter’s reported figure of 14 cents per share.
Revenues
Emeren’s second-quarter net revenues of $30.1 million declined 11.2% from $33.9 million reported in the year-ago period. However, the reported figure surpassed the Zacks Consensus Estimate of $23 million by 30.9%.
Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise
Emeren Group Ltd. Sponsored ADR price-consensus-eps-surprise-chart | Emeren Group Ltd. Sponsored ADR Quote
Projects
As of Jun 30, 2024, SOL had 264 megawatts (MW) of projects in operation. Of these, the company operates 80 MW in Europe, 24 MW in the United States and 160 MW in China.
During the second quarter, Emeren continued to increase its advanced and early-stage solar development project pipeline to 7,844 MW.
Operational Highlights
Emeren’s operating expenses amounted to $6.4 million in the reported quarter, down 15.7% year over year.
The gross profit in the quarter came in at $9.4 million compared with $12.7 million in the year-ago period.
The company reported an operating income of $3 million compared with an operating income of $5 million in the prior-year quarter.
Financial Condition
As of Jun 30, 2024, Emeren had cash and cash equivalents of $50.8 million compared with $70.2 million as of Dec 31, 2023.
The company’s long-term debt totaled $22.9 million as of Jun 30, 2024, up from $22.7 million as of Dec 31, 2023.
The cash outflow from operating activities totaled $9 million as of Jun 30, 2024 compared with the cash outflow of $26.1 million in the same period last year.
Guidance
For the third quarter of 2024, Emeren projects revenues in the range of $25-$28 million. It also expects a gross margin of 35-38% for the same period. The Zacks Consensus Estimate for 2024 sales is pegged at $27.5 million, up from the midpoint of the guidance range.
For 2024, SOL reaffirmed its guidance. The company still expects to generate revenues in the range of $150-$160 million. The Zacks Consensus Estimate for 2024 earnings, pegged at $150.3 million, lies near the lower end of the company’s guidance.
Emeren also continues to expect its earnings per ADS to be 43 cents during 2024. The Zacks Consensus Estimate for 2024 earnings, pegged at 27 cents, is much lower than the company’s guidance.
The gross margin for 2024 is still expected to be 30%.
Zacks Rank
Emeren Group currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
First Solar, Inc. (FSLR - Free Report) reported second-quarter 2024 earnings of $3.25 per share, up a solid 104.4% from the prior-year quarter’s reported earnings of $1.59 per share. The bottom line also beat the Zacks Consensus Estimate of $2.67 by 21.7%.
First Solar’s second-quarter net sales were $1.01 billion, which surpassed the Zacks Consensus Estimate of $0.95 billion by 6.8%. The top line also improved 24.6% from the year-ago quarter’s $0.81 billion.
Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2024 adjusted earnings of 43 cents per share, highlighting a 70.7% decline from $1.47 reported in the prior-year quarter. The bottom line also lagged the Zacks Consensus Estimate of 49 cents per share by 12.2%.
Enphase Energy’s second-quarter revenues of $303.5 million missed the Zacks Consensus Estimate of $314 million by 1.8%. The top line also declined 57.3% from the prior-year quarter’s reported figure of $711.1 million.
Nextracker Inc. (NXT - Free Report) reported first-quarter fiscal 2025 adjusted earnings of 93 cents per share, highlighting a 93.8% rise from 48 cents reported in the prior-year quarter. The bottom line also surpassed the Zacks Consensus Estimate of 66 cents per share by 40.9%.
NXT’s first-quarter revenues of $719.9 million beat the Zacks Consensus Estimate of $618 million by 16.5%. The top line also increased 50.1% from the prior-year quarter’s reported figure of $479.5 million.