NYSE$SOL

Emeren Group Ltd-ADR · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Emeren Group's Q4 2023 financial performance reflected a significant increase in revenue year-over-year, but was impacted by project delays and one-time adjustments, resulting in a net loss.

Emeren Group's Q4 2023 saw a 71% year-over-year increase in revenue, reaching $44.0 million. However, the company experienced a net loss of $8.1 million, impacted by project delays, a $4.1 million adjustment to earnout revenue in Poland, and $5.0 million in write-offs. Despite these challenges, cash and cash equivalents increased to $70.2 million.

  • Revenue increased by 71% year-over-year to $44.0 million.
  • Gross profit was $3.3 million with a gross margin of 7.6%.
  • Net loss was $8.1 million, or $0.15 per ADS.
  • Cash and cash equivalents increased to $70.2 million.

Headline financials

Total Revenue

$44M

Previous: $40.8M+7.8%
EPS (adj)

-$0.15

Previous: $0.05-400.0%
Gross Margin

11.3%

No prior period
Capital Expenditures

$5.09M

Previous: $37.6M-86.5%
Net Income

-$8.1M

Previous: -$4.67M-73.4%
Operating Income

-$9.5M

Previous: -$2.63M-260.8%
Gross Profit

$3.3M

Previous: $15.3M-78.5%
Stock-Based Comp

$202K

Previous: $1.74M-88.4%

Revenue & EPS history

Emeren Group · Revenue · Quarterly

$44M

Q4 2023+7.8%vs Q4 2022
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Forward guidance

Emeren Group anticipates strong growth in 2024, driven by increasing demand for solar energy and supportive government policies. The company expects full-year revenue to be in the range of $150 million to $160 million, with a gross margin of approximately 30% and a net income of at least $26 million, or approximately $0.50 per ADS.

Tailwinds

  • Expects 2024 full year revenue to be in the range of $150 million - $160 million.
  • Expects gross margin to be approximately 30%.
  • Expects net income to be at least $26 million, or approximately $0.50 per ADS.
  • Anticipates 2024 IPP revenue to be between $24 million - $26 million and gross margin to be approximately 50%.
  • Expects gross profit contributed by DSA globally to be at least $6 million.

Headwinds

  • Results were below full-year guidance primarily due to delays in closing the sales of six projects in U.S. and Europe.
  • Projects continued to face delays due to rising interest rates affecting financing terms.
  • Utility-scale project delays stemming from transmission capacity challenges.
  • Regulatory uncertainty in the U.S. and Europe.
  • Q4 results impacted by several one-time items, including a $4.1 million adjustment to the earnout revenue at our 75 MW of projects in Poland as well as $5.0 million of write-offs of project cancellations and bad debt reserves.

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 Q4 2023

Historical avgQ4 2023

-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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