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Yingli Green (YGE) Reports Narrower-than-Expected Loss in Q1

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Chinese solar panel manufacturer, Yingli Green Energy Holding Company Ltd. , also known as Yingli Solar, reported adjusted net loss of $1.47 per American Depositary Share (ADS) in first-quarter 2017, narrower than the Zacks Consensus Estimate of a loss of $2.27. Notably, the company had posted earnings of 60 cents per ADS in the year-ago quarter.

Revenues

Total revenue was $179.9 million, down 50.7% year over year. Revenues also missed the Zacks Consensus Estimate of $186 million by 3.3%.

Highlights of the Release

Total photovoltaic (PV) module shipments were 370.9 megawatts (“MW”) in first-quarter 2017, compared with 508.1 MW in first-quarter 2016.

Gross margin in the reported quarter deteriorated a whooping 1500 basis points year over year to 5.0%. Operating expenses were down 45.3% to $24 million.

Operating loss in first-quarter 2017 was $15 million against the year-ago quarter’s operating income of $28.9 million.

Interest expenses were $22.7 million in the reported quarter compared with $27.3 million in the year-ago period.

Financial Highlights

The company had cash & cash equivalents of $60.6 million as of Mar 31, 2017 compared with $125.1 million as of Dec 31, 2016.

Long term debt, excluding current portion, was $361.9 million as of Mar 31, 2017, down from $363.5 million as of Dec 31, 2016.

Guidance

For second-quarter 2017, Yingli Green expects PV module shipments in the range of 950–1,050 MW. Earlier, the company announced its expectation for shipments in the range of 2.1–2.2 GW for the full year.

Peer Releases

First Solar Inc. (FSLR - Free Report) reported first-quarter 2017 earnings of 25 cents a share. The Zacks Consensus Estimate was pegged at a loss of 13 cents. The reported number declined 84.9% from the prior-year figure of $1.66.

SunPower Corp. reported first-quarter 2017 loss of 42 cents per share, narrower than the Zacks Consensus Estimate of a loss of 66 cents. In the year-ago period, the company had posted a loss of 42 cents.

JA Solar Holdings Co., Ltd. posted first-quarter 2017 adjusted earnings of 3 cents per diluted American Depositary Share (ADS). The Zacks Consensus Estimate was pegged at a loss of 2 cents. Earnings declined 91.2% from 34 cents in the year-ago period.

Zacks Rank

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

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