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ReneSola Ups Second Quarter and Full Year 2013 Outlook

UPDATE: ReneSola shares are up more than 20 percent in pre-market trading on the back of this news.

In a press release Tuesday, Chinese solar company, RenaSola (NYSE: SOL) updated its guidance with more bullish numbers that should please investors.

The company estimates its total solar wafer and modular shipments to be between 760 megawatts (MW) and 770 MW versus prior estimates of 700 MW to 720 MW. Solar module shipments were upped from 400 MW to 420 MW to a new estimate of 450 MW to 460 MW.

Revenue estimates were revised to $365 million to $375 million–up from previous guidance of $310 to $330 million. Gross margin will fall in a range of 5 percent to 6 percent versus a previous forecast of 3 percent to five percent.

Mr. Xianshou Li, ReneSola’s chief executive officer, said,

“Amid a challenging macro environment, we have transformed our company into a global solar brand and technology leader. Furthermore, we have substantially expanded our solar module business in several key international markets through effective sales and marketing of our leading-edge, proprietary technology while leveraging our efficient manufacturing processes. With the support of our growing downstream businesses, we expect to deliver improved results in the second half of 2013.”

The China-based company supplies photovoltaic products to markets all over the world including the United States, Germany, Italy, Belgium, China, Greece, Spain, and Australia. In recent years, competition from Chinese solar companies has driven the price of photovoltaic products down. This squeezed the margins of American-based companies like First Solar (NASDAQ: FSLR).

As U.S. markets open, watch all solar names. This is not only good news for ReneSola but for the entire industry.

Disclosure: At the time of this writing, the author had no position in the company mentioned.

[stock-tools exchange="NYSE" symbol="SOL" image_height="230" image_width="350"]

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