Chines solar company JinkoSolar (JKS) delivered stronger-than-expected fourth-quarter results.
JinkoSolar’s revenue came in at $361 million, higher than the street consensus of $347 million. Gross margin was 24.7%, over 4 percentage points higher than the consensus 20.4%. As a result, non-GAAP EPS ended up $1.28 versus $0.71 expected by the street.
JinkoSolar had a bright outlook for 2014, according to Roth Capital Partners analysts Philip Shen, Matt Koranda, and Matthew Riley:
Management expects Q1’14 module shipments of 440-470MW (vs. prior ROTHe of 425MW) and full year shipments of 2.3-2.5GW (vs. prior ROTHe of 2.1GW). Additionally, management sees 400MW of project development activity in 2014, with 300MW expected to be completed by YE’14 and another 100MW expected to reach the construction phase.
The 2014 outlook means JinkoSolar will have to ramp up capacity to meet its own guidance. Well, the company plans to add capacity by buying from bankrupt competitors. Phew, that is better than adding new capacity.