ReneSola (SOL) Posts Profit After 10 Quarters of Losses

NEW YORK (TheStreet) -- ReneSola (SOL) managed to swing to a profit in its fourth quarter, its first period of net income in 10 quarters.

The China-based solar energy developer recorded profit of a penny a share compared to a loss of $1.03 a share in the year-ago quarter. Net profits of $800,000 compared to a loss of $88.9 million in the fourth quarter 2012.

In the three months to December, total sales jumped 43% to $438.8 million.

Over fiscal 2014, the company expects to ship 2.3 to 2.5 gigawatts of modules, compared to the 1.73 gigawatts shipped in 2013.

Despite the positive improvements, shares of the company had dropped 2.6% to $3.77 by midday.

Trading volume of 6.6 million was more than double its three-month daily average.

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TheStreet Ratings team rates RENESOLA LTD as a Sell with a ratings score of D. The team has this to say about their recommendation:

"We rate RENESOLA LTD (SOL) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and feeble growth in its earnings per share."

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