NYSE$SOL

Emeren Group Ltd-ADR · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Achieved solid progress with disciplined growth and strong operating discipline.

Emeren Group reported $30.1 million in revenue, a gross profit of $9.4 million, and a net income of $0.4 million in Q2 2024. Despite a year-over-year revenue decline of 11% due to reduced RTB sales, the company achieved a rebound from a net loss in Q1 2024. The company reaffirmed full year revenue guidance of $150 to $160 million.

  • Generated $30.1 million in revenue, underpinned by a gross profit of $9.4 million and a gross margin of 31.2%.
  • Operating profit was $3.0 million and net income was $0.4 million, reflecting a disciplined approach to growth.
  • Signed over 2 GW of projects with 8 DSA partners in Europe, with contracted revenue of over $60 million expected over the next 2-3 years.
  • IPP assets exhibited strong growth and profitability, contributing approximately 29% of total revenue for the quarter.

Headline financials

Total Revenue

$30.1M

Previous: $33.8M-11.2%
EPS

$0.01

Previous: $0.14-92.9%
Gross Margin

31.2%

Previous: 37.4%-16.6%
Capital Expenditures

-$6.73M

Previous: $2.16M-411.7%
Free Cash Flow

-$15.7M

Previous: -$4.51M-248.6%
Net Income

$392K

Previous: $8.35M-95.3%
Operating Income

$2.96M

Previous: $5.05M-41.4%
Gross Profit

$9.38M

Previous: $12.7M-25.9%
Cash & Equivalents

$50.8M

Previous: $60.5M-15.9%
Total Assets

$458M

No prior period

Revenue & EPS history

Emeren Group · Revenue · Quarterly

$30.1M

Q2 2024-11.2%vs Q2 2023
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Forward guidance

The company anticipates Q3 revenue between $25 to $28 million, with gross margin between 35% and 38%. Full year 2024 revenue is expected to range from $150 to $160 million, with a gross margin of approximately 30%. Net income in 2024 is expected to be around $22 million, with earnings per ADS of approximately 43 cents. IPP revenue is expected to be between $24 million and $26 million, with a gross margin of approximately 50%. DSA revenue is expected to be around $20 million in the second half of 2024.

Tailwinds

  • Advancing early-stage projects.
  • Securing additional DSA partnerships in Europe and the U.S.
  • Optimizing strategies to maximize the value of our development pipeline.
  • Q3 revenue will fall within the range of $25 to $28 million, with gross margin between 35% and 38%.
  • Operating profit is expected to grow in line with revenue, with a continued focus on cost management and efficiency.

Headwinds

  • Full-year net income will be affected by the earlier write-offs and foreign exchange losses.
  • Revenue declined 11% year-over-year, primarily due to reduced RTB sales in Europe.
  • Net income was reduced by an approximately $2.0 million write-off related to canceled projects.
  • Net income was reduced by an unrealized foreign exchange loss of $0.8 million.
  • Operating expenses were higher than the $5.5 million in Q1 2024, primarily due to an approximately $2.0 million write-off related to canceled projects.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 15 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-1.2%

Avg return

Earnings day

+1.5%

Avg return

5 days after

-1.1%

Avg return

30 days after

33%

20 / 60 earnings

Positive

+24.5%

Q2 2013

Best reaction

-33.3%

Q3 2013

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025-0.5%-2.2%+4.9%
Q2 2025+0.0%+0.0%+1.6%
Q1 2025+10.3%-1.8%+13.3%
Q4 2024-19.0%+12.4%-6.2%
Q3 2024-7.7%-7.9%-13.3%
Q2 2024+21.7%+22.0%+38.4%
Q1 2024-6.3%-10.7%-28.8%
Q4 2023+15.3%+17.6%-6.0%
Q3 2023-16.2%-12.4%+6.4%
Q2 2023-3.8%+0.0%-9.9%
Q1 2023+3.2%+7.1%+11.5%
Q4 2022+1.2%+9.7%+2.5%
Q3 2022+12.5%+4.3%-3.4%
Q2 2022-3.4%+5.6%-7.1%
Q1 2022+3.7%-6.9%-2.0%
Q4 2021-8.3%-13.3%-27.9%
Q3 2021+4.7%+2.2%+7.5%
Q2 2021-1.1%
Q1 2021+17.4%
Q4 2020-11.9%
Q3 2020-21.6%
Q2 2020-9.1%
Q1 2020+7.0%
Q4 2019-5.8%
Q3 2019-3.8%
Q2 2019+10.4%
Q1 2019-7.9%
Q4 2018+0.0%
Q3 2018-9.0%
Q2 2018-4.4%
Q1 2018+7.6%
Q4 2017-2.6%
Q3 2017-4.0%
Q2 2017-7.8%
Q1 2017-2.8%
Q4 2016-2.1%
Q3 2016-3.0%
Q2 2016-4.7%
Q1 2016+11.4%
Q4 2015-3.4%
Q3 2015-3.7%
Q2 2015-6.8%
Q1 2015-7.7%
Q4 2014+20.7%
Q3 2014-15.1%
Q2 2014-10.9%
Q1 2014-5.9%
Q4 2013+1.3%
Q3 2013-33.3%
Q2 2013+24.5%
Q1 2013-5.4%
Q4 2012-7.9%
Q2 2012-10.1%
Q4 2010-1.7%
Q4 2009-1.7%
Q3 2011+17.0%
Q1 2011-5.7%
Q3 2010+1.5%
Q2 2010+17.0%
Q1 2010+3.2%

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