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JinkoSolar (JKS) to Report Q1 Earnings: What's in Store?

Zacks Equity Research
·4 min read

JinkoSolar Holding Company Limited JKS is scheduled to report first-quarter 2020 results on Jun 15, before market open.

In the last reported quarter, the company witnessed a negative earnings surprise of 27.27%. The bottom line also missed the Zacks Consensus Estimate in the trailing four quarters, the average negative surprise being 32.39%.

Let's see how things have shaped up prior to this announcement.

Factors at Play

On Mar 5, 2020, JinkoSolar announced that it has sold more than 1 gigawatt (GW) of its Tiger module since January 2020. The company is likely to have witnessed strong demand in the first quarter for this product and the results are likely to reflect robust volume growth of this module.

JinkoSolar Holding Company Limited Price and EPS Surprise

JinkoSolar Holding Company Limited Price and EPS Surprise
JinkoSolar Holding Company Limited Price and EPS Surprise

JinkoSolar Holding Company Limited price-eps-surprise | JinkoSolar Holding Company Limited Quote

Further, Jinkosolar launched its new N type all black solar panel specifically developed for home installation in March. This panel enables homeowners to fit more power capacity on rooftops than ever before. Such innovations are expected to have boosted the company’s first-quarter top line.

Backed by these factors, JinkoSolar is likely to have seen solid top-line growth in the to-be-reported quarter. Notably, the Zacks Consensus Estimate for JinkoSolar’s first-quarter revenues is pegged at $1 billion, which indicates a solid 15.3% increase from the year-ago quarter’s reported figure. The estimate is in line with the lower end of the company’s guided range of $1-$1.08 billion.

Such solid revenue growth must have contributed to bottom-line growth in the first quarter. Notably, the Zacks Consensus Estimate for JinkoSolar’s first-quarter earnings is pegged at 75 cents, implying a massive surge of 525% from the year-ago quarter’s reported figure.

Further, in March, its board of directors approved a share repurchase program, which authorized the solar module manufacturer to repurchase up to $100 million of its ordinary shares. This reflects solid cash generating capability of the company that the upcoming results should duly reflect.

However, taking into account the fact that the outbreak of COVID-19 across China affected certain raw materials supply and logistics during the first quarter, some module shipments of JinkoSolar must have been postponed to the second quarter of 2020. The company had projected that approximately 400-500 MW of its solar module shipments in the first quarter will be postponed to the second quarter. We can expect updates on this once the company releases its results on Jun 15.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for JinkoSolar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

JinkoSolar has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Solar Releases

ReneSola Ltd. SOL incurred a loss of 4 cents per American Depositary Share (ADS) from continuing operations in first-quarter 2020, wider than the Zacks Consensus Estimate of a loss of 3 cents. The reported figure, however, narrowed from the year-ago quarter’s loss of 14 cents.

Enphase Energy ENPH reported first-quarter 2020 adjusted earnings of 38 cents per share, which surpassed the Zacks Consensus Estimate of 32 cents by 18.8%. The bottom line also surged a massive 375% from 8 cents reported in the prior-year quarter.

SunPower SPWR reported first-quarter 2020 adjusted loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents and a loss of 41 cents reported in the year-ago quarter.

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Renesola Ltd. (SOL) : Free Stock Analysis Report
JinkoSolar Holding Company Limited (JKS) : Free Stock Analysis Report
SunPower Corporation (SPWR) : Free Stock Analysis Report
Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
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