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JinkoSolar's (JKS) Q2 Earnings Beat Estimates, Sales Down Y/Y

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Shares of JinkoSolar Holding Co. Ltd. (JKS - Free Report) gained 4.1% to reach $48.71 per share on Sep 15, after the company reported its second-quarter 2021 results.
The company reported second-quarter 2021 adjusted earnings per American Depositary Share (ADS) of 89 cents, which compared favorably with the Zacks Consensus Estimate of a loss of 23 cents. The bottom line, however, declined significantly from the year-ago quarter’s earnings of $1.20 per ADS.
The company reported GAAP earnings of 21 cents per ADS, compared with 93 cents in the year-ago quarter. 

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $1.23 billion surpassed the Zacks Consensus Estimate of $1.21 million by 1.9%. The top line declined 6.2% on a year-over-year basis due to decrease in solar module shipments.

Quarterly Highlights

In second-quarter 2021, JinkoSolar’s total solar module shipments were 5,203 megawatts (3,976 MW for solar modules, and 1,227 MW for cells and wafers), up 16.4% year over year.
Gross margin during the quarter under review was 17.1% compared with 17.9% in the prior-year quarter. The decrease in margin was primarily due to decline in the average selling price of solar modules on account of the intensified market competition globally.
The company’s total operating expenses decreased 7% year over year to $155.3 million. The year-over-year downside was primarily attributable to a decline in shipping cost stemming from decreased modules shipment.
The company incurred $24.4 million as interest expenses, up 48.3% year over year, as the company's interest-bearing debts increased.
As of Jun 30, 2021, the company's in-house annual mono wafer, solar cell and solar module production capacity was 27 GW, 12 GW (940 MW for N-type cells) and 31 GW, respectively.

Financial Condition

As of Jun 30, 2021, JinkoSolar had cash and cash equivalents of $883.5 million, down from $1.15 billion as of Dec 31, 2020.
Total interest-bearing debts as of Jun 30, 2021, were $3.12 billion compared with $2.80 billion as of Dec 31, 2020.

Q2 Business Developments

During the second quarter, JinkoSolar entered into a strategic logistic cooperation agreement with Maersk and China COSCO Shipping Corporation to support steady growth in global sales.
In the reported quarter, JinkoSolar added 7 GW of new cells in its production capacity in response to increased demand for large-size products.

Q3 and 2021 Guidance

For the third quarter of 2021, the company expects total shipments to be 5-5.5 GW, (solar module shipments in the range of 4.5 GW to 5 GW). Total revenues for the third quarter are expected in the range of $1.24 billion to $1.37 billion. The Zacks Consensus estimate for third-quarter revenues is pegged at $1.62 billion, which lies much above the company guided range.
For 2021, JinkoSolar estimates total shipments (including solar modules, cells and wafers) in the range of 25 GW to 30 GW.

Zacks Rank

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

Solar Releases 

Enphase Energy (ENPH - Free Report) delivered second-quarter 2021 adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 42 cents.
First Solar Inc. (FSLR - Free Report) reported adjusted earnings of 77 cents per share, which outpaced the Zacks Consensus Estimate of 60 cents for the June-end quarter of 2021.
Canadian Solar (CSIQ - Free Report) reported second-quarter 2021 earnings of 18 cents per share, which compared favorably with the Zacks Consensus Estimate of a loss per share of 31 cents.