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JinkoSolar's (JKS) Q3 Earnings Beat Estimates, Sales Down Y/Y

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JinkoSolar Holding Co. Ltd.(JKS - Free Report) reported third-quarter 2021 adjusted earnings per American Depositary Share (ADS) of 5 cents, which compared favorably with the Zacks Consensus Estimate of a loss of 21 cents.

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $1.33 billion surpassed the Zacks Consensus Estimate of $1.29 million by 3.6%. The top line declined 2.3% on a year-over-year basis due to decrease in solar module shipments.

Quarterly Highlights

In third-quarter 2021, JinkoSolar’s total solar module, cell and wafer shipments were 4,993 megawatts (4,671 MW for solar modules, and 322 MW for cells and wafers).

Gross margin during the quarter under review was 15.1% compared with 17% in the prior-year quarter. The decrease in margin was primarily due to cost increases on account of the rise of material prices and a decreasein the average selling price of solar modules in response to the intensified market competition globally.

The company’s total operating expenses increased 24.9% year over year to $183.9 million. The year-over-year downside was primarily dueto an increase in shipping cost.

The company incurred $25.7 million as interest expenses, up 28.1% year over year, as itsinterest-bearing debts increased.

As of Sep 30, 2021, the company's in-house annual mono wafer, solar cell and solar module production capacity was 31 GW, 19 GW (940 MW for N-type cells) and 36 GW, respectively.

Financial Condition

As of Sep 30, 2021, JinkoSolar had cash and cash equivalents of $1 billion, down from $1.15 billion as of Dec 31, 2020.

Total interest-bearing debts as of Sep 30, 2021, were $3.69 billion compared with $2.80 billion as of Dec 31, 2020.

Q3 Business Developments

JinkoSolar's percentage of module shipments in the Chinese market in the third quarter doubled compared to the second quarter. Also, in the reported quarter, JinkoSolar's competitive large-size module products accounted for nearly 50% of module shipments, compared with less than 20% in the first half of 2021.

Q4 and 2021 Guidance

For the fourth quarter of 2021, the company expects total shipments to be 7.3-8.8 GW, (solar module shipments in the range of 7 GW to 8.5 GW). Total revenues for the fourth quarter are expected in the range of $1.8 billion to $2.2 billion.

For 2021, JinkoSolar tweaked its estimates for total shipments (including solar modules, cells and wafers) from 25 GW to 30 GW to a newguided range of 22.8 GW to 24.3 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) reported third-quarter 2021 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%.

The Zacks Consensus Estimate of $2.26 per share for 2021 earnings has been revised upwards by 16.5%. The 3-5 years’ long-term earnings growth rate for ENPH is pegged at 38.47%. Impressively, shares of Enphase Energy have appreciated a whopping 95.4% in the last one year.

First Solar (FSLR - Free Report) reported third-quarter 2021 adjusted earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents by 33.3%. Its third-quarter sales were $584 million, which lagged the Zacks Consensus Estimate of $699 million by 16.5%.

First Solar still expects earnings to be $4.00-$4.60 per share on sales of $2.88-3.10 billion in 2021. The Zacks Consensus Estimate for sales and earnings are slightly below the mid-point of First Solar’s guided range. The stock has returned 14.5% in the past year.

SolarEdge Technologies (SEDG - Free Report) reported third-quarter adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.38 by 5.1%. SolarEdge’s revenues of $526.4 million in the third quarter missed the Zacks Consensus Estimate of $530 million by 0.6%.

For fourth-quarter 2021, SolarEdge expects revenues to be $530-$560 million. The Zacks Consensus Estimate of $548.2 million is slightly above the mid-point of SolarEdge’s guided range. The stock has gained 19.8% in the past year.