Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why ReneSola's Shares Plunged 36% on Wednesday

By Travis Hoium - Dec 2, 2020 at 2:45PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Earnings weren't quite what investors expected.

What happened 

Shares of solar project developer and operator ReneSola ( SOL 6.88% ) 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. 

So what

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. 

Solar farm in a field.

Image source: Getty Images.

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.

Now what

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. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

ReneSola Ltd Stock Quote
ReneSola Ltd
SOL
$5.59 (6.88%) $0.36

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/07/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.