ReneSola Loss Narrows; Stock Up On Strong Outlook - Update

(RTTNews) - Chinese solar photovoltaic products provider ReneSola Ltd (SOL), Friday reported a second-quarter loss that narrowed from a year ago, aided by increases in sales and prices. The results for the quarter came in ahead of Wall Street estimates.

The company provided a strong outlook for the third quarter, sending its shares up 11 percent on the New York Stock Exchange.

"Despite what remains a challenging macro environment and a fiercely competitive solar industry, we are optimistic our investments will set us up for long-term growth and continued geographic expansion," said CEO Xianshou Li..

ReneSola, based in Jiashan, China, posted a quarterly net loss of $21 million or $0.24 per American Depositary Share, or ADS, compared with $35 million or $0.40 per ADS last year.

On average, three analysts polled by Thomson Reuters expected a loss of $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter jumped 62 percent to $377 million from $233 million a year ago, and topped analysts' estimates of $367.73 million.

Solar wafer and module shipments jumped 71 percent to 849 megawatts year-over-year.

While gross margin improved to 7.3 percent from 0.6 percent a year ago, operating margin was a negative 4.4 percent, compared with a negative 15 percent.

ReneSola expects third-quarter sales of $360 million to $380 million, while analysts currently expect revenues of $343.80 million.

The company expects total solar wafer and module shipments for the quarter to be in the range of 730 MW to 750 MW.

For fiscal 2013, the company continues to expect total solar wafer and module shipments to be in the range of 2.8 GW to 3.0 GW.

In July, ReneSola's polysilicon production was temporarily impacted by flooding conditions in Sichuan province. Third quarter polysilicon production output is expected to be in the range of 1100 MT to 1300 MT, the company said.

Shares of ReneSola are trading at $4.88, up $0.45 or 10.95%, on a volume of 5.7 million shares on the NYSE.