Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why ReneSola Shares Plunged

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of photovoltaic manufacturer ReneSola (NYSE: SOL  ) have fallen 20% today after the company released its third-quarter earnings report.

So what: Revenue jumped 92.2% from a year ago to $419.3 million and came in well ahead of the $360.7 million estimate. But net loss was $200.3 million, or $2.23 per ADS, which was far larger than the estimated loss of $0.22. 

Now what: The real story here is that ReneSola tried upgrading a polysilicon factory last year in hopes of lowering costs and improving quality. That effort failed and management abandoned it last quarter, sucking up a $194.7 million impairment along the way. Other than that, the quarter was great.

What worries me is that gross margin was only 8.1% last quarter, and management expects a 9%-11% margin for the fourth quarter. That's well below the best in the industry and will keep me from buying today's drop.

Energy stocks to buy today
Want a better way to play energy right now? The Motley Fool is offering a comprehensive look at three energy companies set to soar as the industry evolves. Find out who they are in the special free report, "3 Stocks for the American Energy Bonanza." Don't miss out on this timely opportunity; click here to access your report -- it's absolutely free. 

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2754293, ~/Articles/ArticleHandler.aspx, 9/27/2016 12:03:39 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 3:59 PM
SOL $1.01 Up +0.01 +1.00%
ReneSola CAPS Rating: *