ReneSola (SOL) has reported earnings resultsthis morning ahead of analyst estimates but the red ink continues toflow despite the best quarterly revenue number in over a year. Theyposted an adjusted loss of .03/share (estimates called for loss of.08/share) on revenues of $180 million (beating estimates of $169million).
SOL CFO Charles Bai commented on the quarter: “During the fourthquarter of 2009, we continued to improve our manufacturing efficiencywhile expanding our market share worldwide. We worked through theremainder of our high-cost raw materials and expect first quarter 2010polysilicon cost to be below US$60 per kilogram. We also reduced ouraverage wafer processing cost significantly to approximately US$0.34per watt. With anticipated further cost reductions in each segment ofour business and continuing strong demand for our products andservices, we expect to return to profitability in the first quarter of2010.”
Looking ahead, the company is seeing robust demand to begin2010 and expect total shipments in the range of 215 – 230MW andrevenues in the range of $195 – 205 million (ahead of analystexpectations of $180 million) in the first quarter. While the companydoes expect wafer price declines of 10 -15% in the 2nd half of 2010 dueto increasing competition and German tariff cuts, they maintain theirfull year 2010 shipment guidance of 900MW – 950MW and expect to beprofitable.
Shares of SOL are down about 2% in premarket trading.