Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

First Solar, Inc. (FSLR), LDK Solar Co., Ltd (ADR) (LDK): What To Know About ReneSola Ltd. (ADR) (SOL)

ReneSola Ltd.On Thursday, ReneSola Ltd. (ADR) (NYSE:SOL) will release its latest quarterly results. The key to making smart investment decisions on stocks reporting earnings is to anticipate how they’ll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you’ll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

The solar industry has been going through a major upheaval lately, and as a small Chinese solar company, ReneSola Ltd. (ADR) (NYSE:SOL) has been right in the middle of it. With failures starting to emerge among the numerous Chinese players in the solar market, investors are questioning which companies will survive. Let’s take an early look at what’s been happening with ReneSola Ltd. (ADR) (NYSE:SOL) over the past quarter and what we’re likely to see in its quarterly report.

Stats on ReneSola

Analyst EPS Estimate ($0.28)
Year-Ago EPS ($0.47)
Revenue Estimate $264.2 million
Change From Year-Ago Revenue 25%
Earnings Beats in Past 4 Quarters 0

Source: Yahoo! Finance.

How will ReneSola’s earnings fare this quarter?
Analysts have actually gotten somewhat more optimistic about ReneSola Ltd. (ADR) (NYSE:SOL)’s earnings in recent months, having cut their loss estimates for the first quarter by $0.06 per share and narrowed their full-year 2013 loss expectations by nearly triple that amount. The stock languished for much of the past three months but rebounded in the past week to recover all its lost ground and post a modest 2% gain since early February.

The state of the Chinese solar industry has grown increasingly dire recently, as defaulted on its bonds rather than receive an anticipated bailout from the Chinese government. LDK Solar Co., Ltd (ADR) (NYSE:LDK) has also faced big problems, having “partially defaulted” on bonds last month and negotiating a settlement with many of the bondholders. Yet although ReneSola Ltd. (ADR) (NYSE:SOL) has similar debt challenges, it was able to secure a $51 million loan from the China Development Bank, giving it more breathing room to try to work its way out of its financial troubles.

Moreover, ReneSola has had some successes lately. Back in April, the company announced it had won a 1.8-megawatt project in New Mexico and had agreed to a 44-megawatt module arrangement with Enerparc. Then just last week, the company said that it had supplied solar modules for three community projects in Vermont. That may seem like peanuts next to the success that First Solar, Inc. (NASDAQ:FSLR) has had in selling hundreds of megawatts of generation capacity to major utility producers, and admittedly, those large projects have been primarily responsible for First Solar, Inc. (NASDAQ:FSLR)’s superior profitability. Yet while ReneSola’s Vermont projects only added up to 335 kilowatts, they nevertheless represent the scale needed to serve small local communities, and tapping into the trend toward green energy could represent a business opportunity for ReneSola.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.