ReneSola Ltd SOL, a fully-integrated solar project developer, has released its preliminary unaudited financial results for third-quarter 2019. The company is expected to report third-quarter 2019 results on Nov 18, before market open.
According to the preliminary results, the company’s revenues for the third quarter are within the range of $55 million and $60 million, much better than its previous guidance of $15 million to $20 million. The mid-point of the current guidance ($57.5 million) has surged 202.6% from the year-ago quarter’s level of $19 million.
Gross margin for third-quarter 2019 is projected in the range of 15-17% compared with the prior guidance of 35-40%. The mid-point of the current guidance (16%) declined 29.7% from the year-ago quarter’s level of 45.7%. The downside was caused by revenue shift to project sales.
What Lies Ahead?
Aberdeen Standard Investments has bought a Poland-based portfolio of ground-mounted solar farms with a total installed capacity of 55 megawatts (MW) from ReneSola.
Also, the company has signed a contract with a China state-owned enterprise to sell Zhejiang-based 11 rooftop DG projects with an aggregate installed capacity of 20.6 MW. ReneSola also inked another agreement with Obton to sell Hungary-based 24 solar plants with a combined capacity of 13.9MW.
ReneSola is expected to gain from contracts from domestic as well as international market. The company is currently focused on expanding its business in the markets of Vietnam, Canada, Poland, Hungary, France, Spain and Turkey. Also, this solar project developer is actively pursuing opportunities in new markets that include South Korea and India.
Global Renewable Scenario
The global solar market has been witnessing improvements since the beginning of 2019. Per a report by Wood Mackenzie, global solar photovoltaic (PV) installations are expected to reach 114.5 GW in 2019, up 17.5% from 2018 levels. Such predictions reflect on future prospects related to global solar energy development.
Higher usage of solar power on a global scale will create more opportunities for solar companies like Canadian Solar CSIQ, JinkoSolar Holding JKS and First Solar FSLR among others.
Shares of ReneSola have gained 34.8% in the past three months against the industry’s decline of 8.6%.
ReneSola carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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