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Yingli Green (YGE) Reports Wider-than-Expected Loss in Q3

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Chinese solar panel manufacturer Yingli Green Energy Holding Company Ltd. , also known as Yingli Solar, reported adjuested net loss of $2.18 per American Depositary Share (“ADS”) in third-quarter 2016, wider than the Zacks Consensus Estimate of a loss of $1.30. Moreover, reported loss was wider than the year-ago quarter loss of $2.77 per ADS.

 

 

 

Revenues

Total revenue was $218.9 million, down 37.7% year over year. Revenues also missed the Zacks Consensus Estimate of $240 million by 8.8%.

Highlights of the Release

Total PV module shipments were 365.3 megawatts (“MW”) in the third quarter of 2016, compared with 460.4 MW in third-quarter 2015.

Gross margin in the reported quarter deteriorated 1050 basis points year over year to 5.5%. Operating expenses were down 90.9% to $46.1 million.

Operating loss in the third quarter of 2016 was $34 million, reflecting an improvement of 92.5% from the year-ago quarter figure of $450.5 million.

Interest expenses were $24 million in the reported quarter, compared with $39.7 million in the year-ago period.

 

YINGLI GREEN EN Price, Consensus and EPS Surprise

YINGLI GREEN EN Price, Consensus and EPS Surprise | YINGLI GREEN EN Quote

 

Financial Highlights

The company had cash & cash equivalents of $100.8 million as of Sep 30, 2016, compared with of $89.8 million as of Jun 30, 2016.

Long-term debt, excluding current portion, was $385.4 million as of Jun 30, 2016, up from $387 million as of Jun 30, 2016.

Guidance

For the fourth quarter, Yingli Green expects PV module shipments in the range of 600–670 MW. The company has revised its 2016 shipments guidance of 2.1 GW to 2.2 GW for the full year.

Peer Releases

JA Solar Holdings Co. Ltd. posted third-quarter 2016 adjusted earnings of 13 cents per diluted American Depositary Share (ADS), beating the Zacks Consensus Estimate of 3 cents by a wide margin. Earnings, however, deteriorated from the year-ago figure of 65 cents by 80%.

First Solar Inc. (FSLR - Free Report) reported third-quarter 2016 earnings of $1.22 a share, beating the Zacks Consensus Estimate of 69 cents by a wide 76.8%. The reported number, however, declined 64.2% from the prior-year figure of $3.41.

Canadian Solar Inc. (CSIQ - Free Report) reported third-quarter 2016 earnings of 29 cents per share, in line with the Zacks Consensus Estimate. Reported earnings, however, plunged 63.3% from the year-ago tally of 79 cents.

Price Movement

Yingli Green Energy’s stock lost about 46.17% in the last one year, much worse than the Zacks categorized Energy-Alternate Sources market's decline of 34.54%. This could have been triggered by the recent decline in shipments and gross margin.

Zacks Rank

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

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