ReneSola Ltd. (SOL) reported first-quarter earnings of 14 cents per share, beating both the Zacks Consensus Estimate of 11 cents and year-ago quarterly earnings of a penny.
Operational Results
ReneSola in the reported quarter shipped 242.4 MW from 215.2 MW in the fourth quarter of fiscal 2009 and 90.4 MW in the year-ago quarter. Solar wafer and module shipments were 226.9 MW and 15.4 MW, respectively.
As a result, revenues rose to $206.6 million, increasing by 14.8% from $179.9 million in the fourth quarter of fiscal 2009 and by 93.1% compared to $106.9 million in the year-ago quarter.
ReneSola reported a gross profit of $35.3 million with a margin of 17.1% in the quarter. In the year-ago quarter, the company incurred a loss of $51.1 million. Total operating income was $21.2 million with an operating margin of 10.3%, compared to an operating loss of $58.3 million in the year-ago quarter.
Financial Condition
ReneSola at first quarter-end 2010 had cash and cash equivalents of $98 million, compared with $172.6 million at the end of the year-ago quarter. Long-term borrowings increased to $171.4 million from $135.7 million in the year-ago period.
Guidance
ReneSola in the current quarter expects total solar product shipments in the range of 230 MW – 250 MW. This is expected to bring in revenues in the range of $230 million –$250 million while gross profit margin is expected in the range of 21% – 23%. The Zacks Consensus EPS Estimate is currently at 25 cents for the quarter.
ReneSola, however, expects solar wafer price declines in the range of 10% to 15% in the second half of fiscal 2010 due to increased competition and feed-in tariff cuts in international markets, such as Germany. The company maintains its fiscal 2010 solar product shipment guidance in the range of 1,000 MW – 1,100 MW with revenue in the range of $900 million – $950 million.
The company expects an average gross profit margin in the range of 21% – 23% for fiscal 2010. The Zacks Consensus EPS Estimate is currently 74 cents for the ongoing fiscal year.
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