ReneSola Ltd. (SOL) Surges 7% on Earnings Beat

Shares of ReneSola Ltd. (SOL) are up 7.41% to $1.45 in pre-market trading Wednesday after the company reported fourth-quarter earnings of $387 million or ($0.08) per share. Analysts had been modeling $355.08 million and ($0.13) per share.

For full-year 2014, the solar firm said net revenues were $1.56 billion, an increase of 2.8% from $1.52 billion in 2013. Gross profit was $209.3 million with a gross margin of 13.4%. Meawhile, gross profit came in at $51.2 million, compared to gross profit of $57.1 million in Q3’14.

For Q1’15, ReneSola guided revenues of $360-380 million, as compared to analysts’ expectations of $392.30 million. For full year 2015, the company expects its net revs to be in the range of $1.5 billion to $1.6 billion.

On valuation measures, ReneSola Ltd. ADS shares, which currently have an average 3-month trading volume of 908,833 shares, trade at a forward P/E of 45.00 and a P/E to growth ratio of (0.24). The median Wall Street price target on the name is $1.88 with a high target of $2.00. Currently ticker has no ‘Buy’ endorsements, compared to 1 ’Hold’ and 1 ‘Sell’.

Profitability-wise, SOL has a t-12 profit and operating margin of (1.50%) and (0.89%), respectively. The $137.48 million market cap company reported $221.70 million in cash vs. $698.1 million in debt in its most recent quarter.

SOL currently prints a one year loss of about 63.30% and a year-to-date loss of around 4.30%.

ReneSola Ltd. manufactures and sells various solar power products. The company was founded in 2005 and is based in Jiashan, the People’s Republic of China.

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