Shares of solar project developer and operator ReneSola (SOL -2.81%) fell as much as 36% in trading Wednesday after the company reported third-quarter 2020 financial results. The stock recovered some early losses but was still down 18.3% at 10:20 a.m. EDT.
Revenue fell a whopping 85% versus a year ago to $9.7 million, but that was largely due to project timing. Net income for the quarter was $2.1 million, down from $2.4 million a year ago.
Management said it now has a project pipeline of 800 megawatts (MW) of projects, which includes 709 MW of late-stage projects and 23 MW that are under construction. These projects should keep the company growing in the long term.
Shares of ReneSola have been very volatile in 2020 and now that financial results are starting to come out investors are setting more realistic expectations. There wasn't a rapid comeback from COVID-19 delays that some may have expected, but the business is performing relatively well and reporting a small profit as a result. That's a positive sign in solar development and I wouldn't take this sell-off as a reason to jump ship from this renewable energy stock today.