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What's in the Cards for JinkoSolar (JKS) in Q4 Earnings?

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JinkoSolar Holding Co., Ltd. (JKS - Free Report) is slated to report fourth-quarter 2021 results on Mar 23 before the opening bell.

In the last reported quarter, the company deliveredan earnings surprise of 123.81%. JinkoSolar has a trailing four-quarter earnings surprise of 670.26%, on average.

Factors to Note

The strong demand for renewable energy and various favorablepolicies to increase the pace of a transition to renewable sources of energy, along with the benefits derived from higher module pricing,is expected to have boosted fourth-quarter revenues of JKS.

In particular, favorable demand for JinkoSolar’s premium-quality products, such as Tiger Pro and a two-millimeter product, might have aided its overall revenues in the soon-to-be-reported quarter.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.14 billion, suggesting growth of 48% from the year-ago reported figure.

From the cost perspective, rising freight and fuel costs are likely to have partially dampened JinkoSolar’searnings in the to-be-reported quarter.

However, lower cell production costs may have benefited earnings of the fourth quarter.

Additionally, the company’s effort to reduce costs with upgraded technology is likely to have contributed tothe soon-to-be-reported quarter’sbottom line. Also, the gross margin improvement expected from a much-improved vertical integrated capacity expansion by the end of 2021 is forecast to have boosted its fourth-quarter earnings.

The Zacks Consensus Estimate for the company’s fourth-quarter earningsis pegged at 31 cents per share,suggesting solid growthof 181.8% from the year-ago quarter.

What the Zacks Model Unveils

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

Earnings ESP:JKS’ 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 #3.You can see the complete list of today’s Zacks #1 Rank stocks here.

Recent Solar Releases

Enphase Energy (ENPH - Free Report) reported fourth-quarter 2021 adjusted earnings of 73 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents by 28.1%. The bottom line improved 43.1% from 51 cents per share reported in the prior-year quarter.

Enphase Energy’s fourth-quarter revenues of $412.7 million beat the Zacks Consensus Estimate of $403 million by 2.4%. ENPH’s top line soared 55.8% from the year-ago quarter’s $264.8 million, driven by the strong demand for its microinverter systems.

First Solar, Inc. (FSLR - Free Report) reported fourth-quarter 2021 earnings of $1.23 per share, which surpassed the Zacks Consensus Estimate of $1.07 by 15%. The bottom line increased 13.9% from the prior-year quarter’s earnings of $1.08 per share.

First Solar’s fourth-quarter sales were $907.3 million, which lagged the Zacks Consensus Estimate of $915 million by 0.8%. However, FSLR’s top line improved 48.9% from the year-ago quarter’s $609.2 million.

Sunrun (RUN - Free Report) reported fourth-quarter 2021 earnings of 10 cents per share, in line with the Zacks Consensus Estimate. The bottom line significantly improved from a loss of 6 cents per share reported in the prior-year quarter.

Sunrun’s total revenues for the quarter came in at $435.2 million, which increased 35.8% from the prior-year quarter. RUN’s top line also surpassed the Zacks Consensus Estimate by 11%.

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