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JinkoSolar (JKS) Q4 Earnings and Revenues Miss Estimates

Zacks Equity Research

JinkoSolar Holding Co., Ltd. JKS reported fourth-quarter 2016 non-GAAP earnings per American Depositary Share (ADS) of 88 cents that missed the Zacks Consensus Estimate of $1.33 by 33.8%. The reported figure also declined 62.4% from the year-ago quarter earnings of $2.34 per ADS.

For 2016, the company reported earnings per ADS of $4.85 per share, which beat the Zacks Consensus Estimate of $4.11 by 17.3%.
 

Total Revenue

In the quarter under review, JinkoSolar’s total revenue of $737.6 million missed the Zacks Consensus Estimate of $761 million by 3.1%.

On a year-over-year basis too, the top line declined 21.3%, primarily due to a decline in average selling prices of solar modules in the quarter.

Full-year revenues came in at $3.08 billion, missing the Zacks Consensus Estimate of $3.14 billion by 1.9%. However, reported revenues improved 24.2% from the year-ago figure of $2.48 billion, primarily owing to the increase in shipments of solar modules.

Quarterly Highlights

In the fourth quarter of 2016, total solar product shipment was 1,733 megawatts (MW), up 1.4% year over year. In 2016, total solar product shipment was 6,656 MW compared with 4,512 MW in 2015.

JinkoSolar’s total operating expenses declined 1.8% year over year to $93.9 million, primarily due to lower selling and marketing and general and administrative expenses.

The company incurred $10.7 million as interest expenses, down 15.2%.

JinkoSolar Holding Company Limited Price, Consensus and EPS Surprise

 

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

Financial Condition

As of Dec 31, 2016, JinkoSolar had cash and cash equivalents of $360.3 million, down from $654.4 million as of Dec 31, 2015.

Total interest bearing debts as of Dec 31, 2016 were $891.7 million compared with $1.59 billion as of Dec 31, 2015.

Guidance

For the first quarter of 2017, JinkoSolar expects total solar module shipments in the range of 1.9–2.0 GW.

For the full year, the company anticipates total solar module shipments to the band of 8.5–9.0 GW.

Peer Releases

First Solar Inc. FSLR reported fourth-quarter 2016 earnings of $1.24 per share, which beat the Zacks Consensus Estimate of 97 cents by 27.8%. The reported number, however, declined 22.5% from the prior-year figure of $1.60.

SunPower Corp. SPWR reported fourth-quarter 2016 loss of 73 cents per share, wider than the Zacks Consensus Estimate of loss of 51 cents. In the year-ago period, the company had posted earnings of $1.62 per share.

An Upcoming Peer Release

Canadian Solar, Inc. CSIQ is expected to release fourth-quarter 2016 results on Mar 9. The company carries a Zacks Rank #3 (Hold).

Zacks Rank

JinkoSolar currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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