ReneSola Ltd. Earnings: Here’s Why Shares are Down Now

ReneSola Ltd. (NYSE:SOL) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.81%.

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ReneSola Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.45 in the quarter versus EPS of $-0.47 in the year-earlier quarter.

Revenue: Rose 34.38% to $284.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ReneSola Ltd. reported adjusted EPS loss of $0.45 per share. By that measure, the company missed the mean analyst estimate of $-0.28. It beat the average revenue estimate of $264.2 million.

Quoting Management: “Over the past year, we have worked hard to transform our company into a leading global solar brand and technology leader,” said Mr. Xianshou Li, ReneSola’s chief executive officer. “With vigorous sales and marketing efforts, we have expanded our module business in several key markets, including the United Kingdom, Germany, France, the United States, Australia, India and Japan. Additionally, we continue to push our R&D with downstream products like our AC module and small-scale storage system, and we plan to offer residential PV solutions soon. Although we are seeing the solar market stabilize, a persistent demand-supply imbalance, coupled with competitive pricing, continues to impact our business and the overall industry. Despite this challenging macro environment, we will continue to invest in technologies that help reduce cost and improve efficiency in order to grow our business and gain new global market share.”

Key Stats (on next page)…

Revenue decreased 7.26% from $306.45 million in the previous quarter. EPS increased to $-0.45 in the quarter versus EPS of $-0.53 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.32 to a loss $0.27. For the current year, the average estimate has moved up from a loss of $1.32 to a loss of $1.15 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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