ReneSola Sails Past Estimates - Analyst Blog
30 4월 2011 - 12:23AM
Zacks
ReneSola Ltd. (SOL) in the first quarter of
2011 clocked adjusted Earnings Per American Depositary Share
(EPADS) of 64 cents per share, beating the Zacks Consensus Estimate
of 60 cents and the year-ago quarterly earnings of 14 cents.
On a reported basis, EPADS came in at 49 cents in the reported
quarter versus 14 cents in the year-ago quarter.
Operational Results
In the reported quarter, ReneSola’s revenues rose to $328.2
million comfortably, beating the Zacks Consensus Estimate of $321
million. However revenue came short of the fourth quarter 2010 by
15.1% due to lower average selling prices (ASP) of solar wafers cum
modules along with a decline in module shipments.
ReneSola’s product shipments were 330.4 MW versus 349.4 MW (down
5.4%) in the fourth quarter of 2010. In the reported quarter, solar
wafer and module shipments were 243.5 MW and 86.9 MW,
respectively.
ReneSola clocked a gross profit of $100.6 million and a gross
profit margin of 30.7%, compared to $119.3 million and 30.9% in the
fourth quarter of 2010. The sequential decrease in gross margin was
primarily due to the drop in solar module ASPs and increases in
polysilicon prices.
ReneSola’s operating expenses in the reported quarter slipped to
$25 million versus $33.4 million in the fourth quarter of 2010.
Operating expenses represented 7.6% of total revenues in the
reported quarter, a decrease from 8.6% in the fourth quarter of
2010.
The company had a foreign exchange gain of $4.8 million in the
reported quarter, primarily due to the appreciation of the Euro
against dollar. The company also recognized a $19.8 million loss in
the fair value of foreign exchange forward contracts as the Euro
appreciated to a higher level than the forward rate hedged,
compared to a gain of $10.1 million in the sequential quarter.
Operating income came in at $75.6 million, down 12% versus $85.9
million in the fourth quarter of 2010. Overall ReneSola recorded
net income of $43.3 million compared to net income of $61 million
in the fourth quarter of 2010.
Financial Condition
ReneSola at the end of the reported quarter had cash and cash
equivalents of $435.9 million, compared with $324.3 million at
fiscal-end 2010. Long-term borrowings decreased to $118.8 million
from $121.5 million at the end of fiscal 2010. The company used
cash for operating activities of $3.1 million in comparison to
$42.7 million generated in the year-ago quarter.
Guidance
Keeping in mind the uncertainties in government policies related
to the solar industry, ReneSola for the second quarter of 2011
expects total solar wafer and module shipments to be in the range
of 330 MW–350 MW, revenues to be in the range of $280 million–$300
million and gross profit margin to lie within 25%–27%.
Our Take
The fortunes of ReneSola look promising with a
geographically-diversified customer base, ongoing expansion
programs, subsidy programs, improving operating efficiencies,
rising margins and material cost savings through its
vertically-integrated production structure.
We feel the Zacks #1 Rank (strong buy) stock would open up a
small window of opportunity for investors in the near term (1 to 3
months). In the longer run we are ‘Neutral’ on the company, walking
in hand with its peers like First Solar, Inc.
(FSLR) and Evergreen Solar
Inc. (ESLR).
EVERGREEN SOLAR (ESLR): Free Stock Analysis Report
FIRST SOLAR INC (FSLR): Free Stock Analysis Report
RENESOLA LT-ADR (SOL): Free Stock Analysis Report
Zacks Investment Research
Evergreen Solar, Inc. (MM) (NASDAQ:ESLR)
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부터 5월(5) 2024 으로 6월(6) 2024
Evergreen Solar, Inc. (MM) (NASDAQ:ESLR)
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