Categories Earnings, Technology

Earnings: ReneSola slips to loss in Q4 on lower revenues, higher costs

ReneSola (SOL) reported a net loss for the fourth quarter compared to profit a year earlier as revenues of the solar energy company suffered severely from a decline in new projects and delay in the sale of completed projects. Meanwhile, the bottom line came in above analysts’ forecast and the company’s stock gained sharply in early trading Monday.

The China-based tech firm reported revenues of $5.6 million for the three-month period, which is sharply lower compared to the fourth quarter of 2017 and far below analysts’ forecast.

ReneSola reported a net loss of $4.34 million or $0.01 per share for the quarter, compared to profit of $1.7 million in the year-ago quarter. Adding to the weak bottom-line performance, operating expenses more than doubled to $4.76 million during the quarter.

Adding to the weakness in bottom-line performance, operating expenses more than doubled to $4.76 million during the quarter

For fiscal 2019, the management forecasts revenues from the project business to be between $150 million and $170 million, which is expected to result in overall gross margins of 20-25%. The estimate for first-quarter revenue is $8-$10 million and gross margin between 0% and 5%. Going forward, the cost-cutting initiatives, with focus on workforce reduction, will be continued.

The company said its asset sales in Hungary and Poland, which were expected to have completed last year, got delayed pending completion of due diligence. In the whole of 2018, about 27.2 MW of distributed-generation projects were connected in China, 58.4 MW of projects in Europe and 6.8 MW of projects in the US.

In a separate statement, ReneSola said it completed the sale of a 21-MW community solar portfolio to Nautilus Solar Energy, a solar project development and management company. The portfolio, spread over four sites, will be built through the remainder of the year and is expected to be online in the fourth quarter of the current fiscal year. The financial terms of the deal are not yet known.

Related: ReneSola Q3 2018 Earnings Conference Call Transcript

After falling to a six-year low in December last year, ReneSola shares entered the recovery path this year but traded far below their long-term average. The stock closed the last trading session notably higher and continued to gain in the early hours of Monday.

 

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

Does Unity Software (U) stock has more room to run?

Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a

PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant

PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the

Does the virus-driven boom make Electronic Arts (EA) a good investment?

With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,

Leave a Reply

Your email address will not be published. Required fields are marked *

Add Comment
Loading...

Cancel
Viewing Highlight
Loading...
Highlight
Close
Top