Roth Offers Thoughts On ReneSola Following 'Q1 Beat And Healthy Q2 Guide'

ReneSola Ltd. (ADR) SOL reported its Q1 results ahead of expectations, while guiding to a better-than-anticipated Q2.

Roth Capital’s Philip Shen reiterated a Neutral rating on the company, with a price target of $1.45.

1Q Results

ReneSola reported a modest revenue beat for the quarter, ahead of the consensus and the estimate at $261 million.

Gross margin was also higher than estimated at 17.1 percent, partly driven by improvement in wafer margin and LED business growth.

The EPS for 1Q beat the estimate and the consensus expectations of loss per share, at $0.06.

Related Link: Renesola Strikes Alliance With UCK Group To Develop 116MW Projects In Turkey

Q2 Guidance

“Management reiterated expected project sales of ~100MW in 2016 and expanded its late-stage pipeline to 323MW giving us greater confidence that the company’s sales target is achievable,” Shen mentioned.

However, the analyst prefers to remain on the sidelines until ReneSola is able to demonstrate its ability to grow its distribution and downstream business and generate consistent profits, while also sustaining attractive margins at its manufacturing business.

At the same time, Shen also stated an incrementally positive stance on the company’s downstream business, with ReneSola having increased its total pipeline to 785MW, with a late stage pipeline of 323MW.

“Additionally, SOL resolved its dispute with Pristine Sun and is now expected to be 100 percent owner of 88MW of U.S. solar projects,” Shen added.

ReneSola expects run rate revenues of $20 million per quarter and margins of more than 40 percent by year end 2016 for its LED business.

Posted In: Philip ShenROTH Capital PartnersAnalyst ColorEarningsLong IdeasNewsGuidanceCommoditiesReiterationMarketsAnalyst RatingsTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.