- In addition to missing Q1 estimates, ReneSola (NYSE:SOL) is guiding for Q2 revenue of $250M-$300M, well below a 2-analyst $387.9M consensus. A strategy shift towards focusing on solar project development relative to wafer/module sales appears to be at least partly responsible.
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Business details/financials: Q1 wafer/module shipments totaled 691.5MW, down -7.1% Q/Q and -2.6% Y/Y. Gross margin was 10.5% vs. Q4's 13.2% and Q1 2014's 10.6%, but is expected to rise to 16%-18% in Q2. Operating expenses fell 12.5% Y/Y to $46.2M. ReneSola ended Q1 with $228.1M in cash, $723M in bank borrowings, and $62.9M in convertible notes.
- The company currently holds 96.1MW of solar projects - 4 U.K. projects featuring 71MW of capacity, and 4 Eastern European projects featuring 25.1MW. Project opportunities are being "explored" in several developed markets.
- CEO Xianshou Li: "At the beginning of 2015, we began to scale back our global OEM capacity and focus more on our downstream project opportunities ... As we continue with this strategic transition into the downstream services and project area, we believe we will be better positioned to achieve long-term profitability."
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Q1 results, PR