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Eme (NYSE: SOL) +21.2% in Monday trading to its highest close in nearly three months, after reporting a widening net loss for the full year but guiding for a significant recovery in 2024.
The company’s financial results for fiscal 2023 revealed a net loss of $9.3 million, double from loss from the previous year, on revenues of $104.7 million, up 71% y/y, while EBITDA collapsed to negative $1.7 million from positive $6.7 million in the year fiscal 2022, as the planned divestment of six projects in the United States 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 US and Europe.
As of the end of 2023, the company had nearly 9 GW of solar projects in the pipeline, including 3.1 GW in advanced development stages, plus 5 GW of energy storage projects.
For fiscal 2024, Emeren (SOL) expects revenues of $150 million – $160 million, with about two-thirds of sales forecast for the second half of the year and a gross margin of about 30%, expecting to return in the black with a profit of approximately at least $26 million while operating cash flow is considered positive throughout the year.
Additionally, Roth MKM analyst Philip Shen maintained a Buy rating and $5 price target on Emeren (SOL).