JinkoSolar (JKS) Q2 Earnings Lag Estimates, Sales Rise Y/Y
JinkoSolar Holding Co. Ltd. JKS reported a second-quarter 2022 loss per American Depositary Share (“ADS”) of $1.88, which lagged the Zacks Consensus Estimate of earnings of 19 cents. The company reported earnings per ADS of 21 cents in the year-ago quarter, reflecting a significant decline from the prior-year figure.
Total Revenues
In the quarter under review, JinkoSolar’s total revenues of $2.81 billion surpassed the Zacks Consensus Estimate of $2.25 billion by 24%. The top line increased 137.6% 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-eps-surprise-chart | JinkoSolar Holding Company Limited Quote
Quarterly Highlights
In the second quarter of 2022, JKS’ total solar module, cell and wafer shipments were 10,532 megawatts (“MW”) (10,183 MW for solar modules and 349 MW for cells and wafers).
The gross margin during the quarter under review was 14.7% 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 205.2% year over year to $457 million. The year-over-year upside was primarily due to an increase in the shipping cost of solar modules, an increase in disposal and impairment loss on property, plant and equipment and share-based compensation expenses.
JinkoSolar incurred $13.1 million as interest expenses, down 44.1% year over year, as its interest-bearing debts decreased.
As of Jun 30, 2022, JKS' in-house annual mono wafer, solar cell and solar module production capacity was 43 gigawatts (“GW”), 42 GW (16.9 GW for N-type cells) and 50 GW, respectively.
Financial Condition
As of Jun 30, 2022, JinkoSolar had cash and cash equivalents of $1.98 billion, up from $1.31 billion as of Dec 31, 2021.
Total interest-bearing debts as of Jun 30, 2022 were $3.84 billion compared with $4.02 billion as of Dec 31, 2021.
Q2 Business Developments
In April 2022, JinkoSolar achieved a major technical breakthrough for its 182 mm high-efficiency N-type monocrystalline silicon solar cell, setting a new world record again with the maximum solar conversion efficiency of 25.7% for its large-size monocrystalline silicon TOPCon solar cell.
2022 Guidance
For the third quarter of 2022, JKS expects total shipments in the band of 9-10 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 60.0 GW, 55.0 GW and 65.0 GW, respectively, by the end of 2022.
Zacks Rank
JinkoSolar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
Enphase Energy, Inc. ENPHreported second-quarter 2022 adjusted earnings of $1.07 per share, which improved by a solid 101.9% from the 53 cents reported in the prior-year quarter.
Enphase Energy’s second-quarter revenues of $530.2 soared 67.7% from the year-ago quarter’s $316.1 million. For the third quarter of 2022, ENPH expects revenues in the range of $590-$630 million.
First Solar, Inc. FSLR reported second-quarter 2022 earnings of 52 cents per share, which beat the Zacks Consensus Estimate of 30 cents by 73.3%. However, the bottom line declined from the prior-year quarter’s earnings of 77 cents per share.
First Solar’s second-quarter sales were $621 million, which beat the Zacks Consensus Estimate of $599 million by 3.7%.
SunPower Corporation’s SPWR share price increased 4.9% since its earnings release on Aug 2, 2022. The company reported second-quarter 2022 adjusted earnings of 3 cents per share. The bottom line marked a deterioration from the year-ago quarter’s earnings of 7 cents per share.
During the quarter under review, SunPower’s adjusted revenues came in at $414.1 million. SunPower had cash and cash equivalents of $206.4 million as of Jul 3, 2022 compared with $123.7 million as of Jan 3, 2021.
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