SOL - ReneSola slides after projects delays lead Q2 earnings miss

ReneSola ( NYSE: SOL ) stock fell 8% on Thursday after the solar company posted miss on both lines for its second quarter earnings .

Revenue of $8.21M (-55.7% Y/Y), missed consensus by $6.19M. The sale during the quarter was reportedly driven by the company's IPP assets in China and NTP project sales in the U.S.

By Region: North America revenue, $2.26M; Europe, $0.35M; and China, $5.59M.

GAAP gross profit was $3.7M and represented 45% of revenue. This was up from $1.1M in Q1 2022 down from $11.3M in Q2 2021.

GAAP EBITDA was $2.4M compared to zero in Q1’22.

Non-GAAP EPS of -$0.01 missed estimates by $0.03.

"Our Q2 results were below our guidance range due to delays in project sales in the U.S.....In Europe, Russia’s conflict with Ukraine and record heat and drought continues to cause major energy supply disruptions. In June, Poland’s average wholesale price of electricity increased over 300% to ~885 PLN/MWh ($198/MWh) from ~218 PLN/MWh ($55/MWh) in June 2020 before the Russia-Ukraine conflict began," report.

European Solar PPA prices: In Q2, Poland solar PPA prices increase by 36% to €95.0 per MWh on high demand for renewable energy in tight supply environment; In Europe as a whole, solar PPA prices increased by 19% from the previous quarter and 47% year-over-year.

Cash and cash equivalents of ReneSola ( SOL ) at the end of Q2 2022 were $207.9M.

Pipeline By Region: The company's mid-to-late stage U.S. projects pipeline now totals 653 MW, up from last quarter; Poland, ~705 MW; Spain, 304 MW; In UK, the company holds 235 MW of ground-mounted projects under development; Germany, 40 MW; France,  117 MW.

In Hungary, the company invest in small-scale DG projects, with total capacity of late-stage pipeline at 102 MW. Development in Italy is underway.

Issued Q3 2022 Guidance: The company said revenue will be between $22M to $25M vs. consensus of $22.45M, and our Q3 gross margin to be between 20% to 24%

Reiterated FY 2022 Guidance: Full year revenue forecasted to be in the range of $100M to $120M, vs. consensus of $107.20M; Gross margin of 20 to 25%; and Net Profit of t $9 to $10M.

For further details see: