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JinkoSolar (JKS) Q2 Earnings Miss Estimates, Revenues Beat

Zacks Equity Research

JinkoSolar Holding Co., Ltd. JKS reported second-quarter 2019 earnings per share of 18 cents, which missed the Zacks Consensus Estimate of 28 cents by 35.7%.

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $1,007 million (RMB 6,913 million) beat the Zacks Consensus Estimate of $928 million by 8.5%. The top line improved 10% on a year-over-year basis from $916 million (RMB 6,060.6 million). The upside can be mainly attributed to increase in solar modules shipment.

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 second quarter, JinkoSolar’s total solar modules shipment was 3,386 megawatts(MW), up 21.2% year over year.

The company’s total operating expenses rose 34.5% year over year to $128.7 million (RMB 883.6 million) from $95.7 million (RMB633 million). This increase stemmed from rise in shipping costs associated with an increase in solar module shipments in the second quarter.

The company incurred $17 million (RMB116.8 million) as interest expenses, up 39.3% year over year from spending of $12.2 million (RMB80.6 million) due to increase in borrowings.

Financial Condition

As of Jun 30, 2019, JinkoSolar had cash and cash equivalents of $542.9 million (RMB 3,727.2 million), up from $451.6 million (RMB 3,105 million) as of Dec 31, 2018.

Total interest-bearing debts as of Jun 30, 2019, were $1.94 billion (RMB13.34 billion) compared with $1.41 billion (RMB9.71 billion) as of Mar 31, 2019.

Recent Business Developments

In July, the world's largest solar plant of 1,177 megawatt-peak (MWp) initiated commercial operations as scheduled at Sweihan in Abu Dhabi. The plant was jointly developed by JinkoSolar, Japan's Marubeni Corp as well as Emirates Water and Electricity Company (EWEC),

In the same month, the company supplied 95 MW of highly-efficient solar panels to Vena Energy Australia, an independent power producer with shareholders including Global Infrastructure Partners (GIP) and China Investment Corp (CIC) for use in the Tailem Bend Solar Project.

Guidance

The company expects total revenues for third-quarter 2019 in the range of $980-$1.07 billion.

For the third quarter, JinkoSolar expects total solar modules shipment in the range of 3.2-3.5 Gigawatt (GW).

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

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.

Other Solar Releases

Canadian Solar Inc CSIQ delivered adjusted second-quarter 2019 earnings of 77 cents per share, which surpassed the Zacks Consensus Estimates of 23 cents by 235%.

Enphase Energy, Inc ENPH recorded second-quarter 2019 adjusted earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 13 cents by 38.5%.

First Solar Inc FSLR incurred a loss of 18 cents per share in second-quarter 2019 against the Zacks Consensus Estimate of earnings of 2 cents.

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