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JinkoSolar (JKS) Tops on Q3 Earnings, Ups Shipment View

Zacks Equity Research

JinkoSolar Holding Co., Ltd. JKS reported third-quarter 2016 non-GAAP earnings per American Depositary Share (ADS) of $1.12, beating the Zacks Consensus Estimate of 84 cents by 33.3%. The reported figure, however, declined significantly from the year-ago quarter earnings of $3.12 per ADS.

Total Revenue

In the quarter under review, JinkoSolar’s total revenue of $855.3 million surpassed the Zacks Consensus Estimate of $722 million by 18.5%.

On a year-over-year basis too, the top line surged 39.1% primarily driven by an increase in revenues from electricity generation and a higher pace of growth in solar module shipments compared to the decrease in average selling prices.

JINKOSOLAR HLDG Price, Consensus and EPS Surprise


JINKOSOLAR HLDG Price, Consensus and EPS Surprise | JINKOSOLAR HLDG Quote

Quarterly Highlights

In the third quarter of 2016, total solar product shipment was 1,606 megawatts (MW), up 41.6% year over year primarily on the back of higher shipments of solar modules, silicon wafers and solar cells. Of this, nearly 50 MW were used in downstream projects.

JinkoSolar’s total operating expenses increased 36.7% year over year to $98.5 million primarily due to higher shipping and warranty costs, and a change in provisions of accounts receivable.

The company incurred $32.9 million as interest expenses, up 50.3% mainly due to an increase in loans used for solar power projects.

JinkoSolar continues to support green power generation having connected 1,314 MW of solar power projects to the grid as of Sep 30, 2016.

Financial Condition

As of Sep 30, 2016, JinkoSolar had cash and cash equivalents of $503.1 million, down from $654.4 million as of Dec 31, 2015.

Total interest bearing debts as of Sep 30, 2016 were $2.17 billion, compared with $1.59 billion as of Dec 31, 2015.


For the fourth quarter of 2016, JinkoSolar expects total solar module shipments in the range of 1.7–1.8 GW.

For the full year, the company raised its expectation for total solar module shipments to the range of 6.6–6.7 GW.

Peer Releases

SolarCity Corp. SCTY reported an adjusted loss of $2.27 per share in the third quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.35. The company carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Vivint Solar, Inc. VSLR, another Zacks Rank #2 stock, posted a loss of 36 cents per share in the third quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of 46 cents.

First Solar, Inc. FSLR carries a Zacks Rank #3 (Hold). The company recorded operating earnings  of $1.22 per share in the third quarter of 2016, beating the Zacks Consensus Estimate of 63 cents.

Zacks Rank

JinkoSolar currently carries a Zacks Rank #4 (Sell).

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