ReneSola Ltd. (SOL) is scheduled to report its Q2 2012 results on August 24, 2012, before market opens. The street expects EPS and revenue of ($0.34) loss and $219.21M, respectively.
In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from SOL and the news from its closest competitors.
Recent EPS Actuals vs. Estimates
The company has failed to meet analysts' estimates in the last two quarters. In the last quarter it reported ($0.47) loss per share, failing to meet analyst estimates of ($0.31) loss.
The consensus EPS estimate is ($0.34) loss based on 8 analysts' estimates, down from $0.02 a year ago. Revenue estimates are $219.21M, down from $249.31M a year ago. The median target price by analysts for the stock is $2.00.
Average recommendation: Underweight
- On August 10, 2012, ReneSola announced it has reached an agreement with PowerGuard Specialty Insurance Services ("PowerGuard") to provide a range of long-term insurance and warranty-related coverage for the Company's high-quality solar products. Based in California, PowerGuard manages programs specializing in the design and underwriting of unique insurance and risk management solutions for solar and other alternative energy companies.
- On August 2, 2012, ReneSola Ltd. announced that it has sold 8 MW of high-quality, high-performance monocrystalline solar modules to True Value Solar. Under the terms of the agreement, ReneSola will ship a total of 8 MW of its high-quality, high-performance monocrystalline solar modules directly to True Value Solar's distribution sites in Australia by the end of this month.
- On July 23, 2012, ReneSola Ltd. announced that it has sold 5.95 MW of its high-efficiency Virtus modules to Solargain PV Pty Ltd ("Solargain"), one of the top solar distributors in Australia and one of Australia's integrated solar energy and solar hot water suppliers.
- On July 13, 2012, ReneSola announced it has entered into an exclusive distribution agreement to provide 100 megawatts ("MW") of the Company's high-efficiency Virtus modules to BIG SOLAR S.A. ("BIG SOLAR"), the biggest Greek stockholder and distributor in the field of photovoltaic systems for electricity production through solar energy.
- On May 11, 2012, ReneSola announced its unaudited financial results for the first quarter ended March 31, 2012. Total solar wafer and module shipments in Q1 2012 were 466.0 megawatts ("MW"), exceeding Company guidance and representing an increase of 37.1% from 339.9 MW in Q4 2011. Q1 2012 net revenues were US$211.5 million, exceeding Company guidance and representing an increase of 12.7% from US$187.7 million in Q4 2011. Q1 2012 net loss was US$40.2 million, representing basic and diluted loss per share of US$0.23, and basic and diluted loss per American depositary share ("ADS") of US$0.47.
First Solar (FSLR), JA Solar (JASO), JinkoSolar (JKS), LDK Solar (LDK), and Suntech Power Holdings (STP) are considered major competitors for ReneSola and the chart below compares the stock price changes as a percentage for the selected companies for the last one year period.
Competitors' Latest Development
- On August 15, 2012, Suntech Power Holdings Co Ltd announced that that Dr. Zhengrong Shi will serve as Executive Chairman of the Board and assume the position of Chief Strategy Officer of the Company.
- On August 14, 2012, Suntech Power Holdings Co Ltd announced that it has obtained court orders to freeze the worldwide assets of GSF Capital and Mr. Javier Romero and to have an independent, court-appointed manager (the Manager) oversee their assets.
- On August 7, 2012, Ja Solar Holdings Co Ltd announced that it has signed a supply agreement with A Shade Greener (ASG), a UK-based PV installer and installer of free solar panels to the residential market in the United Kingdom.
- On August 2, 2012, First Solar, Inc. reported in its Form 8-K that effective July 30, 2012, Mr. Ahearn resigned as an employee of the Company and the Employment Agreement terminated.
- On August 1, 2012, First Solar, Inc. announced that it is increasing fiscal 2012 guidance and expects net sales of $3.6-$3.9 billion, compared to prior guidance of $3.5-$3.8 billion.
- On July 30, 2012, Ja Solar Holdings Co Ltd announced that it entered into a share transfer agreement (the Agreement) on July 23, 2012 with M.SETEK Co., Ltd. (M.SETEK), a polysilicon and solar wafer manufacturer in Japan controlled by AU Optronics Corp.
- On June 26, 2012, JinkoSolar Holding Co., Ltd. announced that the Company will supply its modules to a 5.75MW array of solar panels located on the site of the former Canton landfill in Canton, MA. In partnership with Boston-based renewable energy project developer Southern Sky Renewable Energy LLC (SSRE), the project brings life to the two decades-long unused space, serving as a valuable revenue generator and clean power solution for the local community.
- On June 26, 2012, LDK Solar Co Ltd announced that based upon current business conditions for the second quarter of 2012, it estimates revenue to be in the range of $220-$270 million.
- On June 20, 2012, enXco, an EDF Energies Nouvelles Company, announced that they have signed a solar module supply agreement with First Solar Inc. First Solar will deliver 61 megawatts peak (MWp) of thin film modules starting in September 2012 for enXco's Catalina Solar Project located in Kern County, California.
- On June 14, 2012, Ja Solar Holdings Co Ltd announced that Board of Directors has approved a share repurchase program, effective immediately, that authorizes JA Solar to repurchase up to a USD100 million worth of its issued and outstanding American Depositary Shares (ADSs) prior to September 30, 2012.
- On June 11, 2012, First Solar, Inc. and Intermolecular, Inc. announced a collaboration and licensing agreement aimed at accelerating the efficiency roadmap for First Solar's cadmium-telluride (CdTe) photovoltaic (PV) technology.
- On June 4, 2012, LDK Solar Co Ltd announced that the Company has signed three multi-year engineering, procurement, and construction (EPC) agreements. All three projects are located in the Gansu province of the People's Republic of China.
- On May 21, 2012, JinkoSolar Holding Co., Ltd. announced it will provide modules for a 50 megawatt (MW) solar project operated by state-owned renewable energy development company GSHHSD in northwestern China.
The stock has a market capitalization of $135.49M and is currently trading at $1.55 with a 52 week range of $1.16 - $3.66. The stock's year-to-date performance has been 1.96%. It is currently trading above 20 and 50 SMA, but below 200 SMA.
Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.