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JinkoSolar Reports 1st-Quarter Results

JinkoSolar Holding Co. (NYSE:JKS) released its first quarter results before the opening bell on June 15. While the company's earnings were below Wall Street's estimates, revenue surpassed projections.

Snapshot of the quarter

The Shangrao, China-based company registered adjusted earnings of 65 cents per share in the first quarter, up 441.7% from the prior-year quarter. Analysts had anticipated earnings of $1 per share. Revenue of $1.2 billion was ahead of Wall Street's expectations of $1.03 billion and grew roughly 38% over the past year.

During the quarter, the company witnessed higher solar module shipments to the tune of 3,411 milliwatts.

The company recorded an operating income of $103.47 million in the reported quarter, which reflected a gain of 194.5% from the year-ago quarter.

Reflecting on the company's performance, CEO Kangpin Chen said:

"JinkoSolar continued to outperform during the quarter despite a very challenging global operating environment. Total solar module shipments, total revenue and gross margin were all within our guidance range for the quarter.

As one of the world's leading solar module manufacturers, we have leveraged our deep experience to lead the industry through the pandemic which has allowed us to not only further expand our market share but also create technical standards and develop technological breakthroughs for a variety of products."

Second quarter so far

The company has been witnessing challenges on various fronts so far in the second quarter. Global demand has been feeble, though raw material prices have declined. Issues with logistics and project delays in its international market have also curbed its growth.

For the second quarter ending in July, the company predicts total solar module shipments to fall within the range of 4.2 GW to 4.5 GW. Furthermore, the company anticipates total revenue to be between $1.10 billion and 1.18 billion. The gross margin is anticipated to lie in the range of 16% to 18%.

Looking ahead

Due to the Covid-19 pandemic, the solar power company expects a decline in global installations by 25% for full-year 2020. Total solar module shipments are expected to be around 18 GW to 20 GW for the same period. Yearly production capacity is expected to come in at 20 GW for mono wafer, 11 GW for solar cell (including 900 MW N-type cells) and 25 GW for solar module.

Disclosure: I do not hold any positions in the stocks mentioned.

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This article first appeared on GuruFocus.