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JinkoSolar's (JKS) Q1 Earnings Miss, Revenues Beat Estimates

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JinkoSolar Holding Co., Ltd. (JKS - Free Report) reported first-quarter 2018 earnings per American Depositary Share (ADS) of 2 cents, which missed the Zacks Consensus Estimate of 7 cents by 71.4%. The reported figure also declined 92.9% from 28 cents in the year-ago quarter.

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $728.1 million surpassed the Zacks Consensus Estimate of $715 million by 2%.  However, the top-line figure decreased 13.2% on a year-over-year basis. The downturn can be attributed to a decrease in solar module shipments and a decline in the average selling price of solar modules in 2018.

 

Quarterly Highlights

In first-quarter 2018, total solar product shipment was 2,015 megawatts, down 2.6% year over year. Shipments also declined 18.8%, sequentially. Nonetheless, the shipment came in line with the company’s guidance range of 1.8-2.0 gigawatts (GW) for the reported quarter.

JinkoSolar’s total operating expenses decreased 1.6% year over year to $84.7 million, owing to a decrease in shipping costs.

The company incurred $13.6 million as interest expenses, up 63.9%. Increased expenses were on account of interestexpenses associated with discounted notes receivable and an increase in borrowings.

Financial Condition

As of Mar 31, 2018, JinkoSolar had cash and cash equivalents of $410.9 million, up from $296.4 million as of Dec 31, 2017.

Total interest bearing debts as of Mar 31, 2018 were $1.34 billion compared with $1.14 billion as of Dec 31, 2017.

Guidance

For second-quarter 2018, JinkoSolar expects total solar module shipments in the range of 2.4-2.5 gigawatts (GW).

For 2018, the company continues to project total solar module shipments in the 11.5-12.0 GW band.

Zacks Rank & Stock to Consider

JinkoSolar currently carries a Zacks Rank #4 (Sell).

A better-ranked stock in the same space is SolarEdge Technologies (SEDG - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SolarEdge Technologies delivered an average positive earnings surprise of 29.11% in the last four quarters. The Zacks Consensus Estimate for 2018 earnings moved north 6.8% to $3.31 in the last 90 days.

Other Solar Releases

ReneSola Ltd. (SOL - Free Report) reported earnings of a penny, per American Depositary Share (ADS) in the first quarter of 2018, which came in line with the Zacks Consensus Estimate.

Canadian Solar Inc. (CSIQ - Free Report) posted first-quarter 2018 earnings of 72 cents per share, beating the Zacks Consensus Estimate of 38 cents by 89.5%.

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