Emeren (SOL) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Emeren Group Ltd SOL reported earnings per American Depositary Share (“ADS”) of 14 cents for the second quarter of 2023, which surpassed the Zacks Consensus Estimate of 10 cents by 40%.
The figure also indicates a solid improvement from the break-even earnings per ADS reported in the year-ago quarter.
The year-over-year bottom-line improvement can be attributed to higher energy prices, particularly from Europe.
Revenues
Emeren’s second-quarter net revenues of $33.8 million surged 312.5% from $8.2 million reported in the year-ago period. The year-over-year surge in top line can be attributed to strong contribution from all of its business lines.
However, the reported figure lagged the Zacks Consensus Estimate of $39 million by 13%.
Emeren Group Ltd. Sponsored ADR Price, Consensus and EPS Surprise
Emeren Group Ltd. Sponsored ADR price-consensus-eps-surprise-chart | Emeren Group Ltd. Sponsored ADR Quote
Projects
As of Jun 30, 2023, SOL had 236 megawatts (MW) of projects in operation. Of these, the company operates 60 MW in Europe, 24 MW in the United States and 152 MW in China.
During the second quarter, Emeren continued to increase its advanced and early-stage project pipeline to 7.8 gigawatts. As of Jun 30, 2023, the company had a storage pipeline of 8.8 gigawatt-hour in the United States, Europe and China at different stages of development.
Operational Highlights
Its operating expenses amounted to $7.6 million in the reported quarter, up 94.7% year over year. The gross profit in the quarter came in at $12.7 million compared with $3.7 million in the year-ago period.
The company recorded an operating income of $5 million against a reported loss of $0.2 million in the prior-year quarter.
Financial Condition
As of Jun 30, 2023, Emeren had cash and cash equivalents of $60.5 million compared with $107.1 million as of Dec 31, 2022.
The cash outflow from operating activities totaled $2.4 million as of Jun 30, 2023, compared with $7.9 million as of Jun 30, 2022.
Guidance
For the third quarter of 2023, Emeren projects revenues in the range of $27-$30 million. It also expects a gross margin of 35-38% for the same time frame. The Zacks Consensus Estimate for third-quarter revenues is pegged at $51.7 million, higher than the company’s guidance.
For 2023, SOL now expects revenues at the lower end of its earlier guidance of $154-$174 million. The Zacks Consensus Estimate for 2023 revenues is pinned at $160.3 million, lower than the mid-point of the company’s guided range.
Gross margin for 2023 is expected to be more than 30%.
Zacks Rank
Emeren currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
JinkoSolar Holding Co. Ltd. JKS reported second-quarter 2023 earnings per ADS of $3.36, which beat the Zacks Consensus Estimate of $2.08 by 61.5%. The company reported earnings per ADS of $1.10 in the year-ago quarter.
In the quarter under review, JinkoSolar’s total revenues of $4,231.7 million surpassed the Zacks Consensus Estimate of $4,182 million by 1.2%. The top line advanced 62.9% on a year-over-year basis due to an increase in solar module shipments.
First Solar, Inc. FSLR reported second-quarter 2023 earnings of $1.59 per share, which improved 205.8% from the prior-year quarter’s level of 52 cents. The Zacks Consensus Estimate for second-quarter earnings was pegged at 95 cents.
First Solar’s second-quarter net sales were $810.7 million, which beat the Zacks Consensus Estimate of $720 million by 12.6%. The top line improved 30.6% from the year-ago quarter’s recorded figure of $620.9 million.
Enphase Energy, Inc. ENPH reported second-quarter 2023 adjusted earnings of $1.47 per share, which highlights a 37.4% improvement from $1.07 reported in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.27 by 15.8%.
Enphase Energy’s second-quarter revenues of $711.1 million missed the Zacks Consensus Estimate of $727 million by 2.2%. However, the top line rose 34.1% from the prior-year quarter’s reported figure of $530.2 million.
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