(By Balachander) ReneSola Ltd. (NYSE:SOL) slipped to a quarterly loss, wider than market expectations, as revenue declined amid fall in the average selling price (ASP) of solar wafers. American Depositary Receipts (ADRs) of the company rose 3.35 percent in premarket after the top-line came in above consensus.
For the second quarter, net loss was $34.8 million or $0.40 per share, compared with earnings of $1.8 million or $0.02 per share in the year-ago quarter. Wall Street analysts, on average, expected the company to lose $0.34 a share. In the previous quarter, ReneSola posted a loss of $0.47 per share.
Net revenue fell 6.5 percent to $233.4 million, versus consensus estimate of a drop of 12 percent. Sequentially, revenue rose 10 percent.
Gross margin was a positive 0.6 percent versus a positive 18.4 percent in the comparable quarter of last year. In the previous quarter, gross margin was a negative 3.8 percent.
Total solar wafer and module shipments were 503.7 megawatts (MW), up 70.5 percent year over year and 8 percent sequentially.
Looking ahead for the third quarter, the Chinese company expects revenue in the range of $200 million to $220 million and total solar wafer and module shipments to be in the range of 510 MW to 530 MW, with module shipments of 150 MW to 170 MW.
For the whole of 2012, ReneSola still sees total solar wafer and module shipments between 2.2 gigawatts (GW) and 2.4 GW.
American Depositary Receipts (ADRs) of SOL ended Thursday's regular trading session at $1.79. The stock has been trading in the 52-week range between $1.16 and $3.66.