ReneSola (SOL) Misses Estimates

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10:45:41 am on May 21, 2009

ReneSola (SOL) missed on both EPS and revenue consensus estimates and the stock is taking a bit of a hit as a result, off about 8% and testing the 50 day moving average.  The company reported an earnings per ADS of .04/share, just below estimates of .06 while revenues came in shy of expectations at $107 million vs estimates of $113 million.  As we saw with Suntech, the company is doing a good job of cutting costs to get earnings positive (taking out the inventory write down), but the concern is on the revenue side which continues to plummet. 

Looking ahead, the company expects full year revenue to be between $500 – $550 million.

“Against the backdrop of extremely challenging market conditions, I am pleased to report that ReneSola produced a resilient first quarter performance underpinned by relatively strong wafer shipments and further reductions in production costs,” commented Mr. Xianshou Li, ReneSola’s chief executive officer. “We are benefiting from our continued focus on execution and cost reduction. Our commitment to continual technological and operational improvements also helps maintain our competitive advantage. As a result, our production costs were reduced to US$0.36 per watt and our silicon consumption rate fell to an average of 6.0 grams per watt during the first quarter of 2009.”

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