ReneSola (SOL) Issues Strong Preliminary Results, Raises Guidance

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10:32:43 am on July 1, 2010

Renesola (SOL) is providing preliminary Q2 guidance  this morning, beating previous estimates and is raising guidance for the 2nd half.   The company reports official results on August 9th.

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* They expect total shipments for Q2 to be in the range of 250 – 260MW, exceeding previous guidance of 230 – 250MW

* Net revenues are expected to be in the range of $245 – $255 million, exceeding previous guidance of $230 – 250 million. 

* Assuming those revenue numbers hold, that would represent a more than 20% increase over last quarter and represent the 4th straight quarter of sequential revenue growth. 

* Gross profit margin is expected to be in the range of 28 – 30%, ahead of previous estimates of 21 – 23%.  That would be a significant jump over the 17% produced last quarter.
* They are raising guidance for the 2nd half and expect solar product shipments between 600 – 650MW, net revenues between $550 – 570 million and gross margins between 28 – 30%.

Said CEO Li Xianshou, “We expect to see stable pricing in the coming months as demand has remained strong and is expected to continue in the second half of 2010.”

Shares of SOL are up 5% today and testing resistance at the 50 day moving average.  A break above the 6.70 level would be considerably bullish for SOL.  It remains of the most technically strong solar stocks around.

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