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JinkoSolar's (JKS) Q3 Earnings Beat, Revenues Miss Estimates

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JinkoSolar Holding Co., Ltd.'s (JKS - Free Report) third-quarter 2018 earnings per American Depositary Share (ADS) of 72 cents surpassed the Zacks Consensus Estimate of 57 cents by 26.3%. The reported figure also made a significant improvement from 4 cents registered in the year-ago quarter.

Total Revenues

JinkoSolar’s total revenues came in at $974.8 million, which missed the Zacks Consensus Estimate of $989 million by 1.4%. The top line, however, inched up 1% on a year-over-year basis. The upside can be attributed to the company’s record solar module shipments in the third quarter.

Quarterly Highlights

Total solar product shipment was 2,953 megawatts (MW) in the quarter under review, up 24.4% year over year. The figure approximately touched the upper end of the company's guided range of 2.8-3.0 gigawatts (GW).

Total operating expenses accounted for 12.1% of total revenues in the third quarter compared with 10.6% in the year-ago quarter.

Moreover, JinkoSolar incurred $8.1 million as interest expenses, up 3.1% from the third quarter of 2017.

During the third quarter, JinkoSolar signed a 240MW solar module supply agreement with PowerchinaHuadong Engineering Corporation Limited, for the second phase of the 420 MW Dau Tieng solar plant in Vietnam. On completion, this plant will become the largest solar power project in Southeast Asia.

Financial Condition

As of Sep 30, 2018, JinkoSolar had cash and cash equivalents of $391.6 million, up from $296.4 million on Dec 31, 2017.

Total interest-bearing debt as of Sep30, 2018 was $1.38billion compared with $1.14 billion on Dec 31, 2017.

Guidance

For fourth-quarter 2018, JinkoSolar expects total solar module shipments in the range of 3.7-4.0 GW.

For 2018, the company anticipates total solar module shipments in the 11.5-11.8 GW band compared with 11.5-12.0 GW projected earlier.

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.

Other Solar Releases

Canadian Solar Inc. (CSIQ - Free Report) reported third-quarter 2018 earnings of $1.09 per share, which outpaced the Zacks Consensus Estimate of 46 cents by a massive 137%.

Sunrun Inc. (RUN - Free Report) incurred third-quarter 2018 loss of 2 cents per share, comparing unfavorably with the Zacks Consensus Estimate of earnings of 34 cents.

First Solar Inc. (FSLR - Free Report) reported third-quarter 2018 earnings of 54 cents per share, which exceeded the Zacks Consensus Estimate of 45 cents by 20%.

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