China-based solar products company ReneSola Ltd. (SOL: Quote) said Friday it slipped to a loss for the second quarter, as lower selling prices and reduced margins, amid weak economic conditions impacted revenues. ReneSola's quarterly loss was wider compared to Street estimates, while sales exceeded expectations.
Moving forward, ReneSola provided mediocre revenue guidance for the third quarter. Subsequent to the announcement, shares are down 14 percent in afternoon trade on the New York Stock Exchange.
ReneSola, which makes solar wafers and solar power products, said its revenues for the quarter fell 6.5 percent from a year ago. However, total solar wafer and module shipments shipments increased 70.5 percent from last year to 503.7 MW.
Gross margin for the quarter was reduced to 0.6 percent from 18.4 percent last year. Operating margin was a negative 14.9 percent, compared to positive margin of 9.2 percent in the prior year.
ReneSola reported second quarter net loss to common shares of $34.8 million or $0.20 per share, compared to net profit of $1.8 million or $0.01 per share last year.
On a per American Depositary Share, or ADS basis, loss for the quarter was $0.40, compared to profit of $0.02 last year. On average, 8 analysts polled by Thomson Reuters expected a loss of $0.34 per ADS for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter were $233 million, down from $249 million in the corresponding quarter last year. Analysts expected revenues of $219.21 million.
Moving forward, ReneSola expects third quarter revenues of $200 million to $220 million. Analysts currently expect revenues of $228.70 million.
ReneSola expects third quarter solar wafer and module shipments of 510 MW to 530 MW.
The company reaffirmed its previously announced full year 2012 guidance of 2.2 GW to 2.4 GW of total solar wafer and module shipments.
SOL is trading at $1.53, down $0.25 or 14.24%, on the NYSE.
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by RTT Staff Writer
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