ReneSola tumbles post-earnings; polysilicon plant to be shuttered

In its Q3 report, ReneSola (SOL -17.7%) states it has decided to "permanently cease production" at its Phase I polysilicon plant, following unsuccessful effort to lower its cost structure. A $202.8M charge is being taken on the plant's assets.

The company saw Q3 wafer/module shipments of 851MW, roughly flat Q/Q but above guidance of 730MW-750MW. Module shipments rose 6.6% Q/Q to 462.9MW, and are expected to be in a range of 490MW-510MW in Q4.

ReneSola is upping its full-year wafer/module shipment range to 3GW-3.1GW from a prior 2.8GW-3GW.

Q3 gross margin was 8.1%, up from 7.3% in Q2 and -18% a year ago (no typo), and in-line with guidance of 7%-9%. Investors may have wanted more in light of the big GM gains posted by some peers. Q4 GM is expected to be in a range of 9%-11%.

Strong sales to the U.S. and other overseas markets improved ReneSola's ASPs; the company sees the trend continuing in Q4.

Cash/equivalents totaled $438.5M at the end of Q3, and total debt/borrowings $1.53B.

Q3 results, PR

Comments (3)
    , contributor
    Comments (1149) | Send Message
    Glad I sold my shares at 5 bucks when it failed to hold that... Maybe interesting under 3/share.
    5 Dec 2013, 10:22 AM Reply Like
  • glssmrbl
    , contributor
    Comments (1285) | Send Message
    I sold above 5 too. No idea where it's going after earnings though.
    5 Dec 2013, 02:55 PM Reply Like
    , contributor
    Comments (1149) | Send Message
    I'm guessing down into low 3's maybe breaking into the 2 range but probably only for a bit IF it makes it even THAT low.
    5 Dec 2013, 03:18 PM Reply Like
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