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JinkoSolar (JKS) to Report Q1 Earnings: What's in Store?

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JinkoSolar Holding Company Limited (JKS - Free Report) is set to report first-quarter 2021 results on Jun 25, before market open.

In the trailing four quarters, it came up with a negative earnings surprise of 41.30%, on average.

Let's take a closer look at the factors likely to influence the company’s upcoming quarterly results.

Factors to Consider

With gradual recovery observed in solar demand lately, installation activities remained strong during the January-March 2021 quarter. This in turn must have boosted shipments made by JinkoSolar, thereby contributing favorably to its quarterly revenues.

Around the end of the first quarter, the company launched its ultra-efficient Tiger Pro modules with higher power capacity targeted for distributed generation market. This must have also had a favorable impact on JinkoSolar’s first-quarter top line.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $1.20 billion, reflecting a 0.03% rise from the year-ago quarter’s reported figure.

Meanwhile, continued supply shortage of polysilicon might have pushed up the company’s costs, thereby hurting its first-quarter gross margin and in turn the bottom line. Meanwhile, in recent times, JinkoSolar has been incurring increased operating expenses owing to ramp up in production lines upgrade. Expecting this trend to have continued in the first quarter as well, we remain skeptical about the company’s earnings growth in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at a penny, which indicates a 97.4% deterioration from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for JinkoSolar this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.

Earnings ESP: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: JinkoSolar currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Solar Releases

Enphase Energy (ENPH - Free Report) reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents by 36.6%.

First Solar (FSLR - Free Report) reported first-quarter 2021 adjusted earnings of $1.96 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 96%.

SolarEdge Technologies (SEDG - Free Report) reported first-quarter 2021 adjusted earnings of 98 cents per share, which missed the Zacks Consensus Estimate of $1.01 by 3%.

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