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JinkoSolar (JKS) Q1 Earnings Lag Estimates, Sales Rise Y/Y

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·4 min read
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JinkoSolar Holding Co. Ltd. JKS reported first-quarter 2022 earnings per American Depositary Share of 10 cents, which lagged the Zacks Consensus Estimate of 17 cents by 41.2%. However, earnings improved from the year-ago figure of a loss of 55 cents per share.

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $2.33 billion surpassed the Zacks Consensus Estimate of $1.96 billion by 18.8%. The top line increased 91.7% on a year-over-year basis due to an increase in solar module shipments.

JinkoSolar Holding Company Limited Price, Consensus and EPS Surprise

JinkoSolar Holding Company Limited Price, Consensus and EPS Surprise
JinkoSolar Holding Company Limited Price, Consensus and EPS Surprise

JinkoSolar Holding Company Limited price-consensus-eps-surprise-chart | JinkoSolar Holding Company Limited Quote

Quarterly Highlights

In the first quarter of 2022, JKS’ total solar module, cell and wafer shipments were 8,390 megawatts (MW) (8,031 MW for solar modules and 359 MW for cells and wafers).

The gross margin during the quarter under review was 15.1% compared with 17.1% in the prior-year quarter. The contraction in the margin was primarily due to an increase in the material cost of solar modules.

The company’s total operating expenses increased 86.8% year over year to $344.8 million. The year-over-year upside was primarily due to an increase in the shipping cost of solar modules and share-based compensation expenses.

JinkoSolar incurred $25.6 million as interest expenses, up 7.1% year over year, as its interest-bearing debts increased.

As of Mar 31, 2022, JKS' in-house annual mono wafer, solar cell and solar module production capacity was 40 Gigawatt (GW), 40 GW (16.9 GW for N-type cells) and 50 GW, respectively.

Financial Condition

As of Mar 31, 2022, JinkoSolar had cash and cash equivalents of $2.66 billion, up from $1.31 billion as of Dec 31, 2021.

Total interest-bearing debts as of Mar 31, 2022were $4.33 billion compared with $4.02 billion as of Dec 31, 2021.

Q1 Business Developments

JinkoSolar delivered 100 GW of solar modules globally, thus becoming the first company in history to achieve this milestone. Also, in the reported quarter, JinkoSolar delivered more than 500,000 Ultra-efficiency Modules to one of the biggest Bifacial Projects in Europe.

2022 Guidance

For the second quarter of 2022, JKS expects total shipments in the band of 8.5-9.5 GW. For 2022, JinkoSolar anticipates total shipments (including solar modules, cells and wafers) in the range of 35 GW-40 GW.

JinkoSolar expects its annual mono wafer, solar cell and solar module production capacity to reach 55.0 GW, 55.0 GW (including 32.9 GW N-type cells) and 60.0 GW, respectively, by the end of 2022.

Zacks Rank

JinkoSolar currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

Enphase Energy ENPH reported first-quarter 2022 adjusted earnings of 79 cents per share, which improved by 41.1% from the 56 cents reported in the prior-year quarter. The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents.

Enphase Energy’s first-quarter revenues of $441.3 million beat the Zacks Consensus Estimate of $434 million by 1.7%. ENPH’s top line soared 46.2% from the year-ago quarter’s $301.8 million.

First Solar, Inc. FSLR reported a first-quarter 2022 loss of 41 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line deteriorated significantly from the prior-year quarter’s earnings of $1.96 per share.

First Solar’s first-quarter sales were $367 million, which lagged the Zacks Consensus Estimate of $567.4 million by 35.3%. FSLR’s top line also declined by 54.3% from the year-ago quarter’s $803.4 million.

Upcoming Solar Release

SunPower Corporation SPWR is scheduled to release first-quarter 2022 results on May 5. SunPower has a four-quarter earnings surprise of 8.33%.

The Zacks Consensus Estimate for SPWR’s first-quarter earnings, pegged at 3 cents per share, implies a year-over-year decline of 40%.


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First Solar, Inc. (FSLR) : Free Stock Analysis Report

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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

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