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JinkoSolar's (JKS) Q1 Earnings Beat Estimates, Revenues Up Y/Y

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Shares of JinkoSolar Holding Co., Ltd. (JKS - Free Report) escalate 13.6% to reach $43 per share on Jun 25, reflecting investors' optimism following its first-quarter results.

The company reported first-quarter 2021 earnings per American Depositary Share (ADS) of 15 cents, which exceeded the Zacks Consensus Estimate of a penny. The bottom line, however, declined significantly from the year-ago quarter’s earnings of 38 cents per ADS.

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $1,212 million exceeded the Zacks Consensus Estimate of $1,199 million by 1.1%. The top line, moreover, improved 1.2% on a year-over-year basis. The upside can be mainly attributed to the increase in solar module shipments.

Quarterly Highlights

In first-quarter 2021, JinkoSolar’s total solar module shipments were 5,354 megawatts (4,562 MW for solar modules, 792 MW for cells and wafers), surging 33.7% year over year.

Gross margin during the quarter was 17.1% compared with 19.5% in the first quarter of 2020.

The company’s total operating expenses flared up 41.4% year over year to $184.6 million. The year-over-year upside was mainly due to an increase in selling and marketing, general and administrative, research and development, and impairment expenses.

The company incurred $23.9 million as interest expenses, up 44.1% year over year, as the company's interest-bearing debts increased.

As of Mar 31, 2021, the company's in-house annual mono wafer, solar cell and solar module production capacity was 22 GW, 11.5 GW (940 MW for N-type cells) and 31 GW, respectively.

Financial Condition

As of Mar 31, 2021, JinkoSolar had cash and cash equivalents of $1,070 million, down from $1,146.6 million as of Dec 31, 2020.

Total interest-bearing debts as of Mar 31, 2021, were $2.67 billion compared with $2.8 billion as of Dec 31, 2020.

JinkoSolar Holding Company Limited Price, Consensus and EPS Surprise

Recent Business Developments

During the first quarter, JinkoSolar entered a strategic investment agreement with Inner Mongolia Xinte Silicon Materials Co., Ltd. recently to secure its polysilicon material supply.

In March 2021, JinkoSolar launched a new series of ultra-efficient Tiger Pro modules with higher power capacity targeted for distributed generation market.

Q2 and 2021 Guidance

For the second quarter of 2021, the company expects total solar module shipments to be in the range of 5.1-5.3 GW, (solar module shipments to be in the range of 4.0 GW to 4.2 GW). Total revenues for the second quarter are expected in the range of $1.2-$1.25 billion.

For 2021, JinkoSolar estimates total shipments (including solar modules, cells and wafers) in the range of 25 GW to 30 GW. It currently expects its annual mono wafer, solar cell and solar module production capacity to reach 30 GW, 24 GW (including 940 MW N-type cells) and 33 GW, respectively, by the end of 2021, down from the previous guidance of 33 GW, 27 GW, 37 GW, respectively.

Zacks Rank

JinkoSolar currently has a Zacks Rank #5 (Strong Sell).

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

Solar Releases in Q121

Enphase Energy, Inc. (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 Inc. (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, Inc. (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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