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Will Yingli Solar (YGE) Surprise Estimates in Q1 Earnings?
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Yingli Green Energy Holding Co. Ltd. or Yingli Solar – a Chinese solar manufacturer – is set to release first-quarter 2016 financial results before the opening bell on Jun 14.
Last month, the company reported an operating loss of 72 cents per American Depositary Share (“ADS”) in fourth-quarter 2015, narrower than the Zacks Consensus Estimate of a loss of $2.60. The reported loss was also narrower than the year-ago loss of $4.90 per ADS.
Let’s see how things are shaping up for this announcement.
Yingli Solar, in its preliminary first-quarter 2016 results announced on Jun 6, revealed that higher shipments to Japan will help it report its first quarterly profit since 2011.
The company also said that it expects to report a gross margin of 18.5% to 20.5%, up from the 11.8% it reported in the fourth quarter. Although Yingli Solar didn’t provide any figures for net income, it said that its net income for the first quarter of 2016 turned into positive for the first time since the third quarter of 2011, with an estimated net margin of 2.5% to 4.5%.
Yingli Solar expects PV module shipments in the quarter to range between 500–510 MW, narrowing the previous guidance of 480 MW to 510 MW.
That said, Yingli Solar, one of the world’s leading solar panel manufacturers, has been struggling to survive amid a pile of debt. Importantly, the company has failed to generate profits since 2011.
Earnings Whispers?
Our proven model does not conclusively show that Yingli Solar is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below:
Zacks ESP: Yingli Solar currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 97 cents per share.
Zacks Rank: Yingli Solar carries a Zacks Rank #2 (Buy). While this supports a beat prediction, a 0.00% ESP leaves our forecast inconclusive.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Comparison
Solar photovoltaic (“PV”) module manufacturer, Trina Solar Ltd. (TSL - Free Report) reported earnings of 29 cents per ADS in the first quarter of 2016. The bottom line beat the Zacks Consensus Estimate of 23 cents by 26.1% and also surged 81.3% from 16 cents earned in the year-ago quarter.
ReneSola Ltd. (SOL - Free Report) reported earnings of 6 cents per ADS in the first quarter of 2016. The Zacks Consensus Estimate was a loss of 4 cents.
JA Solar Holdings Co. Ltd. posted first-quarter 2016 adjusted earnings of 36 cents per ADS, beating the Zacks Consensus Estimate of 22 cents by a wide margin of 63.6%. Earnings also surged from the year-ago figure of 13 cents by 176.9%.
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Will Yingli Solar (YGE) Surprise Estimates in Q1 Earnings?
Yingli Green Energy Holding Co. Ltd. or Yingli Solar – a Chinese solar manufacturer – is set to release first-quarter 2016 financial results before the opening bell on Jun 14.
Last month, the company reported an operating loss of 72 cents per American Depositary Share (“ADS”) in fourth-quarter 2015, narrower than the Zacks Consensus Estimate of a loss of $2.60. The reported loss was also narrower than the year-ago loss of $4.90 per ADS.
Let’s see how things are shaping up for this announcement.
YINGLI GREEN EN Price, Consensus and EPS Surprise
YINGLI GREEN EN Price, Consensus and EPS Surprise | YINGLI GREEN EN Quote
Factors to Consider this Quarter
Yingli Solar, in its preliminary first-quarter 2016 results announced on Jun 6, revealed that higher shipments to Japan will help it report its first quarterly profit since 2011.
The company also said that it expects to report a gross margin of 18.5% to 20.5%, up from the 11.8% it reported in the fourth quarter. Although Yingli Solar didn’t provide any figures for net income, it said that its net income for the first quarter of 2016 turned into positive for the first time since the third quarter of 2011, with an estimated net margin of 2.5% to 4.5%.
Yingli Solar expects PV module shipments in the quarter to range between 500–510 MW, narrowing the previous guidance of 480 MW to 510 MW.
That said, Yingli Solar, one of the world’s leading solar panel manufacturers, has been struggling to survive amid a pile of debt. Importantly, the company has failed to generate profits since 2011.
Earnings Whispers?
Our proven model does not conclusively show that Yingli Solar is likely to beat estimates this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. That is not the case here, as you will see below:
Zacks ESP: Yingli Solar currently has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 97 cents per share.
Zacks Rank: Yingli Solar carries a Zacks Rank #2 (Buy). While this supports a beat prediction, a 0.00% ESP leaves our forecast inconclusive.
We caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Comparison
Solar photovoltaic (“PV”) module manufacturer, Trina Solar Ltd. (TSL - Free Report) reported earnings of 29 cents per ADS in the first quarter of 2016. The bottom line beat the Zacks Consensus Estimate of 23 cents by 26.1% and also surged 81.3% from 16 cents earned in the year-ago quarter.
ReneSola Ltd. (SOL - Free Report) reported earnings of 6 cents per ADS in the first quarter of 2016. The Zacks Consensus Estimate was a loss of 4 cents.
JA Solar Holdings Co. Ltd. posted first-quarter 2016 adjusted earnings of 36 cents per ADS, beating the Zacks Consensus Estimate of 22 cents by a wide margin of 63.6%. Earnings also surged from the year-ago figure of 13 cents by 176.9%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>