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Emeren (NYSE:SOL) +21.2% in Monday’s trading to its highest close in nearly three months after reporting a widening full-year net loss but guiding for a significant upturn in 2024.
The company’s FY 2023 financial results revealed a net loss of $9.3M, doubled from the previous year’s loss, on revenues of $104.7M, up 71% Y/Y, while EBITDA plunged to negative $1.7M from positive $6.7M in FY 2022, as the planned divestment of six projects in the U.S. and Europe was delayed to 2024.
Emeren (SOL) said the projects were pushed back due to rising interest rates, transmission capacity challenges, and regulatory uncertainty in the U.S. and Europe.
At year-end 2023, the company had nearly 9 GW of solar projects in the pipeline, including 3.1 GW in the advanced development stages, plus 5 GW of energy storage projects.
For FY 2024, Emeren (SOL) guided for revenues of $150M-$160M, with roughly two-thirds of sales forecast for the year’s H2, and gross margin of ~30%, expecting to return to the black with a profit of at least $26M while operating cash flow is seen positive through the entire year.
Also, Roth MKM analyst Philip Shen maintained a Buy rating and $5 price target on Emeren (SOL).
