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JinkoSolar (JKS) Q1 Earnings and Revenues Miss Estimates

Zacks Equity Research

JinkoSolar Holding Co., Ltd. JKS reported first-quarter 2019 earnings per American Depositary Share (ADS) of 23 cents, which missed the Zacks Consensus Estimate of 35 cents by 34.8%. The bottom line, however, improved significantly from the year-ago quarter’s earnings of 2 cents per ADS.

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $867.5 million lagged the Zacks Consensus Estimate of $895 million by 3%. The top line, however, improved 27.5% on a year-over-year basis. The upside can be mainly attributed to the increase in solar modules shipment.

Quarterly Highlights

In first-quarter 2019, JinkoSolar’s total solar modules shipment was 3,037 megawatts, up 50.7% year over year.

The company’s total operating expenses flared up 37.2% year over year to $108.6 million. This upswing resulted from the rise in shipping costs as a percentage of total revenues associated with a significant higher percentage of shipments to overseas markets.

The company incurred $14.3 million as interest expenses, up 12.5% year over year, due to higher borrowings and the cessation of interest capitalization on certain completed solar projects.

Financial Condition

As of Mar 31, 2019, JinkoSolar had cash and cash equivalents of $485.7 million, up from $451.6 million as of Dec 31, 2018.

Total interest-bearing debts as of Dec 31, 2018, were $1.79 billion compared with $1.41 billion as of Dec 31, 2018.

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

Recent Business Developments

During the first quarter of 2019, JinkoSolar renewed its partnership with GRID Alternatives, a national leader in making solar technology and job training accessible to low-income communities.

During the month of April, the company supplied 100 MW of efficient solar modules for the Srepok 1 and Quang Minh Solar Power Plant Complex, one of Vietnam's largest solar power projects as of Apr 24, 2019. During the same time, it also expanded its high efficiency mono wafer production capacity with the construction of a greenfield 5 GW mono wafer production facility in Leshan, Sichuan Province, China.

Recently, the company supplied 351 MW of solar modules to Power Construction Corporation of China, which were installed at the Hong Phong solar PV plant in Vietnam, one of the largest PV projects in the Asia-Pacific region.

Guidance

For second-quarter 2019, JinkoSolar expects total solar modules shipment of 3.2-3.3 GW.

For 2019, the company projects total solar modules shipment of 14-15 GW.

Zacks Rank

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

Other Solar Releases

First Solar Inc. FSLR incurred a loss of 64 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents.

Sunrun Inc. RUN incurred a loss of 12 cents per share in first-quarter 2019 against the Zacks Consensus Estimate of earnings of 32 cents.

SolarEdge Technologies, Inc. SEDG reported first-quarter 2019 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by 3.2%.

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