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 solar manufacturer ReneSola Ltd. (ADR) (NYSE:SOL) fell as much as 10% in early trading after reporting earnings. Most of that loss was erased by mid-day.

So what: First quarter module shipments were 521.1 MW, which was up from 505.3 MW in Q4, and revenue fell 5% sequentially to $415.0 million. Net loss was $14.6 million, or $0.14 per share, which was worse than the $0.08 loss analysts expected.  

Now what: Results were below expectations but just the fact that ReneSola isn't making money in a strong solar market is discouraging. The top companies in solar are now profitable and setting high expectations for the rest of the year. ReneSola's gross margin guidance of 12%-14% for the second quarter would be barely break-even. The company is slowly falling behind and with competitors beginning to invest in next generation manufacturing capacity I wouldn't be a buyer today.

Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.