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JinkoSolar (JKS) Q4 Earnings and Revenues Miss Estimates

Zacks Equity Research

JinkoSolar Holding Co., Ltd. JKS reported fourth-quarter 2018 earnings per American Depositary Share (ADS) of 44 cents, which missed the Zacks Consensus Estimate of 72 cents by 38.9%. The bottom line, however, improved significantly from the year-ago quarter earnings of 12 cents per ADS.

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $1.12 billion lagged the Zacks Consensus Estimate of $1.29 billion by 12.6%.  The top line, however, improved 21.5% on a year-over-year basis. The upside can be mainly attributable to an increase in solar module shipments that was partially offset by a decline in average selling price of solar modules.

JinkoSolar Holding Company Limited Price, Consensus and EPS Surprise

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

Quarterly Highlights

In fourth-quarter 2018, total solar module shipment was 3,618 megawatts, up 45.8% year over year. Shipments also improved 22.5%, sequentially.

JinkoSolar’s total operating expenses increased 39% year over year to $130.2 million. The improvement was driven by an increase in shipping costs as a result of a rise in solar module shipments.

The company incurred $10.8 million as interest expenses, up 33.3% year over year due to higher borrowings.

Financial Condition

As of Dec 31, 2018, JinkoSolar had cash and cash equivalents of $451.6 million, up from $424.4 million as of Dec 31, 2017.

Total interest bearing debts as of Dec 31, 2018, were $1.41 billion compared with $1.14 billion as of Dec 31, 2017.

Quarterly Business Developments

During the fourth quarter, JinkoSolar and Decmil Australia Pty Ltd jointly supplied 255MWp of the former's high efficient solar panels to the Sunraysia Solar Farm developed by Maoneng Group.

The company also supplied 55.7MW of high-efficiency modules to the Garissa Solar Power Plant, which is expected to be one of the largest solar power plants in central and eastern Africa once completed.

Additionally, it delivered 132 MWdc of PV modules to Swinerton Renewable Energy for the construction of the Techren Solar 1 Project in Boulder City, Nevada.

Guidance

For first-quarter 2019, JinkoSolar expects total solar module shipments in the range of 2.8-3.0 gigawatts (GW).

For 2019, the company projects total solar module shipments in the band 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.

Recent Solar Releases

SunPower Corp. SPWR incurred adjusted loss of 21 cents per share in fourth-quarter 2018, narrower than the Zacks Consensus Estimate of a loss of 38 cents.

SolarEdge Technologies SEDG reported fourth-quarter 2018 adjusted earnings of 63 cents per share, which missed the Zacks Consensus Estimate of 70 cents by 10%.

First Solar Inc. FSLR reported fourth-quarter 2018 earnings of 49 cents per share, which missed the Zacks Consensus Estimate of 64 cents by 23.1%.

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