ReneSola shares tumble on big 2Q loss
NEW YORK (AP) — ReneSola tumbled 15 percent in trading Friday after the Chinese solar panel maker posted a second-quarter loss that exceeded Wall Street predictions.
It's proving to be a very tough year for China's solar industry. Global sales are fading, prices are falling, and Western nations are poised to enact new tariffs on China's solar sector, accusing the country of dumping cheap products in domestic markets.
Five major Chinese manufacturers, including industry leaders Suntech Power Holdings Ltd. and Yingli Green Energy Ltd., reported total losses of nearly $250 million in the latest quarter.
For the quarter ended June 30, ReneSola posted a loss of $34.8 million, or 40 cents per U.S. share, compared with a profit of $1.8 million, or 2 cents per U.S. share, in the same quarter last year.
Revenue fell 6.5 percent to $233 million from $249.3 million.
Analysts, on average, expected a loss of 32 cents per share on $220.5 million in revenue, according to a FactSet poll.
The company said its total shipments of solar wafers and modules jumped 71 percent from year-ago levels to 503.7 megawatts, but the growth was offset by a steep drop in average selling prices.
For the third quarter, the company said it expects its total solar wafer and module shipments to total between 510 megawatts and 530 megawatts. The company also backed its previous full-year shipment guidance of 2.2 gigawatts to 2.4 gigawatts of solar wafers and modules.
In morning trading, shares of ReneSola Ltd. fell 26 cents, or 15 percent, to $1.52, after dropping as low as $1.49 earlier in the day. Over the past 52 weeks, the company's shares have traded between $1.16 and $3.66.