Yingli Green Energy Holding Company Limited , better known as Yingli Green Energy, is scheduled to report second-quarter 2016 results before the opening bell on Aug 23. Last quarter, the company posted a positive earnings surprise of 161.86%. Let’s see how things are shaping up for this announcement.
Factors to Consider
Yingli Green Energy expects PV module shipments (including shipments to its own downstream PV projects) in the second quarter of 2016 in the range of 630 MW to 660 MW, compared to its previous guidance of 580–620 MW. Net profit margin is expected to be 2.5–3.5%.
However, Yingli Green Energy expects total revenue to suffer due to lower average selling price of PV modules in the to-be-reported quarter. Consequently, gross margin is projected to be in the 17–19% band, compared to the prior expectation of 18–20%.
Earnings Whispers
Our proven model does not conclusively show that Yingli Green Energy 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 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 30 cents.
Zacks Rank: Although Yingli Green Energy’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes a positive surprise uncertain this season.
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Releases
First Solar Inc. (FSLR - Free Report) reported second-quarter 2016 earnings of 87 cents a share, beating the Zacks Consensus Estimate of 58 cents by 50%.
SolarCity Corp. posted adjusted loss of $2.32 per share in the second quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.43.
Canadian Solar Inc. (CSIQ - Free Report) reported second-quarter earnings of 68 cents per share, beating the Zacks Consensus Estimate of 40 cents by 70%.
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Yingli Green Energy Holding Company Limited , better known as Yingli Green Energy, is scheduled to report second-quarter 2016 results before the opening bell on Aug 23. Last quarter, the company posted a positive earnings surprise of 161.86%. Let’s see how things are shaping up for this announcement.
Factors to Consider
Yingli Green Energy expects PV module shipments (including shipments to its own downstream PV projects) in the second quarter of 2016 in the range of 630 MW to 660 MW, compared to its previous guidance of 580–620 MW. Net profit margin is expected to be 2.5–3.5%.
However, Yingli Green Energy expects total revenue to suffer due to lower average selling price of PV modules in the to-be-reported quarter. Consequently, gross margin is projected to be in the 17–19% band, compared to the prior expectation of 18–20%.
Earnings Whispers
Our proven model does not conclusively show that Yingli Green Energy 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 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: The Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at a loss of 30 cents.
Zacks Rank: Although Yingli Green Energy’s Zacks Rank #3 increases the predictive power of ESP, its 0.00% ESP makes a positive surprise uncertain this season.
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Releases
First Solar Inc. (FSLR - Free Report) reported second-quarter 2016 earnings of 87 cents a share, beating the Zacks Consensus Estimate of 58 cents by 50%.
SolarCity Corp. posted adjusted loss of $2.32 per share in the second quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.43.
Canadian Solar Inc. (CSIQ - Free Report) reported second-quarter earnings of 68 cents per share, beating the Zacks Consensus Estimate of 40 cents by 70%.
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 >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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