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What's in Store for Yingli Green Energy (YGE) in Q2 Earnings?

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Yingli Green Energy Holding Company Limited (YGE - Free Report) , better known as Yingli Green Energy, is scheduled to report second-quarter 2017 results before the opening bell on Sep 19.

Last quarter, the company delivered a positive earnings surprise of 35.24%. Let’s see how things are shaping up for this announcement.

Factors to Consider

During the first-quarter earnings call, Yingli Green Energy stated that it expects to witness a a significant increase in its second quarter shipments, which is estimated to be around 950 to 1,050 megawatts. Moreover, China is projected to comprise over 80% of the total shipment.

However, in spite of a notable improvement anticipated in the to-be-reported quarter’s shipment volumes on a sequential basis, the PV module average price of the company is projected to decrease faster than the module production cost.

Furthermore, due to fall in average selling price (ASP) globally, Yingli Green Energy expects second-quarter gross margin to be affected.

Earnings Whispers

Our proven model does not conclusively show that Yingli Green Energy will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here, as you will see below.

Zacks ESP:  Earnings ESP, which represents the difference between the Most Accurate estimate and the Zacks Consensus Estimate, is 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate for Yingli Green Energy are pegged at a loss of $2.05. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Yingli Green Energy carries a Zacks Rank #3, which when combined with an ESP of 0.00% makes surprise prediction difficult. You can see the complete list of today’s Zacks #1 Rank stocks here.

Note that we caution against stocks with a Zacks Rank #4 or 5 (Sell rated) going into the earnings announcement, especially when the company is seeing negative estimate revisions.

Peer Releases

First Solar Inc. (FSLR - Free Report) reported second-quarter 2017 earnings of 64 cents a share. The Zacks Consensus Estimate was pegged at a loss of 4 cents. The company currently carries a Zacks Rank #3.

Canadian Solar Inc. (CSIQ - Free Report) witnessed second-quarter 2017 adjusted loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 16 cents. This company currently sports a Zacks Rank #1.

SunPower Corp. (SPWR - Free Report) incurred second-quarter 2017 loss of 39 cents per share, narrower than the Zacks Consensus Estimate of a loss of 63 cents. Currently, the company holds a Zacks Rank #2.

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