JinkoSolar (JKS) to Report Q3 Earnings: What's in the Cards?
JinkoSolar Holding Co., Ltd. JKS is slated to report third-quarter 2023 results on Oct 30, before the opening bell.
In the last reported quarter, the company delivered an earnings surprise of 61.54%. JinkoSolar has a trailing four-quarter average earnings surprise of 88.30%.
Factors to Note
Lower supply-chain prices across the solar industry are expected to have led to a demand surge for JKS’ products both in China and the international market in the third quarter. This, in turn, can be projected to have bolstered the company’s shipment count, thereby boosting its third-quarter revenues.
JinkoSolar Holding Company Limited Price and EPS Surprise
JinkoSolar Holding Company Limited price-eps-surprise | JinkoSolar Holding Company Limited Quote
Product wise, module shipment, especially the shipment of JinkoSolar’s N-Type Tiger Neo module, is expected to have contributed a major portion to JKS’ overall revenues in the soon-to-be-reported quarter. Region wise, China and Europe are likely to set the largest growth trends for JinkoSolar in the third quarter, with the United States expected to show some solid shipment growth as well.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $4.22 billion, indicating growth of 53.9% from the year-ago quarter’s reported figure.
The declining cost of polysilicon and the increasing shipment of N-type modules might have bolstered the company’s third-quarter gross margin. Also, as JinkoSolar continues to make good progress in clearing customs in the U.S. market, thereby significantly reducing demurrage charges, we may expect its quarterly gross margin to show a notable year-over-year improvement. This, in turn, is likely to have aided JKS’ bottom-line performance.
Moreover, with the company progressing toward mass production of its N-Type products to meet the growing demand for the same in the global solar market, improved production efficiency might have favorably enabled it to reduce production costs. This must have also bolstered its third-quarter earnings.
The Zacks Consensus Estimate for JKS’ third-quarter earnings is pegged at $1.96 per share, indicating growth of 232.2% from the year-ago quarter’s level.
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 chances of an earnings beat, which is not the case here.
Earnings ESP: JKS’ Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: JinkoSolar currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three companies in the same sector that you may also want to consider as these have the right combination of elements to post an earnings beat this reporting cycle.
Constellation Energy Corporation CEG currently has an Earnings ESP of +6.05% and a Zacks Rank #2. The Zacks Consensus Estimate for Constellation’s third-quarter sales is pegged at $6.81 billion, indicating an improvement of 12.5% from the prior-year reported figure.
CEG delivered an earnings surprise of 228.21% in the last reported quarter. The consensus estimate for third-quarter earnings is pegged at $1.38 per share, implying a significant improvement from the year-ago quarter’s recorded number.
DT Midstream DTM currently has an Earnings ESP of +2.45% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter sales is pegged at $226.8 million, implying a decline of 3.5% from the prior-year reported figure.
DTM delivered an earnings surprise of 5.68% in the last reported quarter. The consensus estimate for third-quarter earnings is pegged at 90 cents per share, in line with the year-ago quarter’s registered number.
Devon Energy DVN currently has an Earnings ESP of +2.16% and a Zacks Rank #2. The Zacks Consensus Estimate for third-quarter sales is pegged at $4.03 billion, indicating a decline of 25.8% from the prior-year reported figure.
DVN delivered a four-quarter average earnings surprise of 0.78%. The consensus estimate for third-quarter earnings is pegged at $1.52 per share, implying a 30.3% deterioration from the year-ago quarter’s level.
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Devon Energy Corporation (DVN) : Free Stock Analysis Report
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DT Midstream, Inc. (DTM) : Free Stock Analysis Report
