Back to top

Image: Bigstock

JinkoSolar (JKS) Q3 Sales Beat Estimates, Earnings Rise Y/Y

Read MoreHide Full Article

JinkoSolar Holding Co. Ltd.’s (JKS - Free Report) share price has increased 4.6% to $48.06 since its earnings release on Oct 28, 2022.

It reported third-quarter 2022 earnings per American Depositary Share (“ADS”) of 90 cents. The Zacks Consensus Estimate for third-quarter 2022 earnings was pegged at 79 cents. The company reported earnings per ADS of 5 cents in the year-ago quarter, reflecting a significant improvement from the prior-year figure.

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $2,743.9 million surpassed the Zacks Consensus Estimate of $2,438 million by 12.6%. The top line increased 106.3% on a year-over-year basis due to an increase in solar module shipments.

Quarterly Highlights

In the third quarter of 2022, JKS’ total solar module, cell and wafer shipments were 10,856 megawatts (MW) (10,286 MW for solar modules and 570 MW for cells and wafers).

The gross margin during the quarter under review was 15.7% compared with 15.1% in the prior-year quarter. The expansion in the margin was primarily due to an increase in the shipments of N-type modules with a higher gross margin.

The company’s total operating expenses increased 130% year over year to $422.9 million. The year-over-year upside was primarily due to an increase in the shipping cost of solar modules.

JinkoSolar incurred $18.1 million as interest expenses, down 29.3% year over year, as its interest income from bank deposits increased.

Financial Condition

As of Sep 30, 2022, JinkoSolar had cash and cash equivalents of $2.01 billion, up from $1.31 billion as of Dec 31, 2021.

Total interest-bearing debts as of Sep 30, 2022 were $4.16 billion compared with $4.02 billion as of Dec 31, 2021.

Q3 Business Development

In October 2022, JinkoSolar's high-efficiency N-Type monocrystalline silicon solar cell set its new record with a maximum conversion efficiency of 26.1%.

2022 Guidance

For the fourth quarter of 2022, JKS expects total shipments in the band of 13-15 gigawatts (GW). For 2022, JinkoSolar anticipates total shipments (including solar modules, cells and wafers) in the range of 41.5 GW-43.5 GW.

JinkoSolar expects its annual mono wafer, solar cell and solar module production capacity to reach 65.0 GW, 55.0 GW and 70.0 GW, respectively, by the end of 2022.

Zacks Rank

JinkoSolar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter. The Zacks Consensus Estimate for third-quarter earnings is pegged at 77 cents.

Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million, driven by the strong demand for its microinverters and battery systems.

First Solar, Inc. (FSLR - Free Report) reported a third-quarter 2022 loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. The bottom line declined significantly from the prior-year quarter’s earnings of 52 cents per share.

First Solar’s third-quarter sales were $628.9 million, which missed the Zacks Consensus Estimate of $770 million by 18.4%. However, the top line improved by 1.3% from the year-ago quarter’s $620.9 million, primarily due to increased module sales.

Upcoming Solar Release

SolarEdge Technologies (SEDG - Free Report) is slated to release third-quarter 2022 results on Nov 7. SolarEdge boasts a long-term earnings growth rate of 27.3%.

The Zacks Consensus Estimate for SEDG’s third-quarter earnings, pegged at $1.45 per share, is on par with the year-ago reported figure. The Zacks Consensus Estimate for SolarEdge’s third-quarter sales is pegged at $826.7 million.

Published in