JinkoSolar (JKS) Q4 Earnings Beat Estimates, Sales Rise Y/Y
JinkoSolar Holding Co. Ltd. JKS reported fourth-quarter 2021 adjusted earnings per American Depositary Share (ADS) of 67 cents, which beat the Zacks Consensus Estimate of 31 cents by a solid 116.1%. Earnings also increased by a whopping 509% from the year-ago figure of 11 cents per share.
JinkoSolarreported adjusted earnings per ADS of $1.70 for full-year 2021, which decreased 48.2% from $3.28 reported in 2020. However, earnings beat the Zacks Consensus Estimate of $1.44 per share by 18.1%.
Total Revenues
In the quarter under review, JinkoSolar’s total revenues of $2.57 billion surpassed the Zacks Consensus Estimate of $2.14 billion by 20.1%. The top line increased 73.9% on a year-over-year basis due to an increase in solar module shipments.
In 2021, JKS generated sales worth $6.41 billion, up 16.2% from the year-ago figure. Revenues beat the Zacks Consensus Estimate of $5.92 billion by 8.3%.
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 fourth quarter of 2021, JinkoSolar’s total solar module, cell and wafer shipments were 9,693 megawatts (MW) (9,024 MW for solar modules and 669 MW for cells and wafers).
The gross margin during the quarter under review was 16.1% compared with 16% in the prior-year quarter. The increase in the margin was primarily due to the reduction in integrated production costs and an increase in the average selling price of solar modules.
The company’s total operating expenses increased 50.4% year over year to $338.7 million. The year-over-year upside was primarily due to an increase in shipping costs.
JinkoSolar incurred $22.7 million as interest expenses, up 25.4% year over year, as its interest-bearing debts increased.
As of Dec 31, 2021, JKS' in-house annual mono wafer, solar cell and solar module production capacity was 32.5 GW, 24 GW (940 MW for N-type cells) and 45 GW, respectively.
Financial Condition
As of Dec 31, 2021, JinkoSolar had cash and cash equivalents of $1.31 billion, up from $1.15 billion as of Dec 31, 2020.
Total interest-bearing debts as of Dec 31, 2021 were $4.02 billion compared with $2.80 billion as of Dec 31, 2020.
Q4 Business Developments
JinkoSolar's percentage of module shipments in China’s market increased 34% in the fourth quarter compared with the third quarter. Also, in the reported quarter, JinkoSolar's mass production efficiency of approximately 900 MW N-type Topcon Cells in the Haining production facility reached 24.5%.
2022 Guidance
For the first quarter of 2022, JKS expects total shipments in the band of 7.5-8 Gigawatt (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 50.0 GW, 40.0 GW (including 16.9 GW N-type cells) and 60.0 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 ENPH reported fourth-quarter 2021 adjusted earnings of 73 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents by 28.1%. The bottom line improved 43.1% from 51 cents per share reported in the prior-year quarter.
Enphase Energy’s fourth-quarter revenues of $412.7 million beat the Zacks Consensus Estimate of $403 million by 2.4%. ENPH’s top line soared 55.8% from the year-ago quarter’s $264.8 million, driven by the strong demand for its microinverter systems.
SunPower SPWR reported a fourth-quarter 2021 loss of 7 cents per share, which lagged the Zacks Consensus Estimate of earnings of 4 cents. The bottom line significantly declined from earnings of 14 cents per share reported in the prior-year quarter.
SunPower’s total revenues for the quarter came in at $384.2 million, which declined 13.8% from the prior-year quarter. SPWR’s top line also beat the Zacks Consensus Estimate of $379.1 million by 1.3%.
Sunrun RUN reported fourth-quarter 2021 earnings of 10 cents per share, in line with the Zacks Consensus Estimate. The bottom line significantly improved from a loss of 6 cents per share reported in the prior-year quarter.
Sunrun’s total revenues for the quarter came in at $435.2 million, which increased 35.8% from the prior-year quarter. RUN’s top line also surpassed the Zacks Consensus Estimate by 11%.
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