Emeren Group Ltd’s SOL share price jumped 5.9% to $1.96 on Aug 21 after the latest quarterly results were disclosed.

Emeren’s Q2 2024 earnings per American Depositary Share (“ADS”) were a cent, missing the Zacks Consensus Estimate by a significant 85.7% and showing a substantial 92.9% decline from the previous year’s value.

Revenue Performance

Despite a moderate 11.2% dip from the previous year, Emeren’s Q2 net revenues of $30.1 million exceeded the Zacks Consensus Estimate by a notable 30.9%.

Project Portfolio

As of Jun 30, 2024, SOL had 264 megawatts of projects in operation across Europe, the United States, and China.

During Q2, Emeren augmented its solar project pipeline to an impressive 7,844 MW.

Operational Insights

Operating expenses for Emeren totaled $6.4 million, marking a 15.7% year-over-year decrease.

Gross profit in the quarter stood at $9.4 million, down from $12.7 million in the same period last year.

Operating income was reported at $3 million, showing a decline from the $5 million in the prior-year quarter.

Financial Overview

Emeren held $50.8 million in cash and cash equivalents as of Jun 30, 2024, compared to $70.2 million on Dec 31, 2023.

Long-term debt increased marginally to $22.9 million from $22.7 million between Dec 2023 and Jun 2024.

Operating activities resulted in a cash outflow of $9 million in Jun 2024 compared to $26.1 million in Jun 2023.

Guidance and Projections

For Q3 2024, Emeren anticipates revenues in the $25-$28 million range with a gross margin of 35-38%. For the full fiscal year, revenues are expected to range between $150-$160 million with an EPS of 43 cents.

Zacks Consensus Estimate for 2024 sales edges closer to Emeren’s guidance, while EPS projections fall below the company’s forecast.

The company expects the gross margin for the year to hover around 30%.

Market Positioning

Emeren Group currently holds a Zacks Rank #4, indicating a “Sell” recommendation.

Comparative Performance

First Solar, Inc. FSLR reported robust earnings and revenue growth, outperforming both earnings and revenue estimates in Q2 2024.

Enphase Energy, Inc. ENPH showed a decline in earnings and revenue, missing both earnings and revenue estimates for the same period.

Nextracker Inc. NXT displayed strong financial performance in the first quarter of fiscal 2025, surpassing both earnings and revenue estimates.