JinkoSolar (JKS) Tops Q1 Earnings And Revenue Estimates

JinkoSolar Holding Co., Ltd. (NYSE:JKS) reported first-quarter 2016 non-GAAP earnings per American Depositary Share (ADS) of $1.68, well ahead of the Zacks Consensus Estimate of $1.11 by 51.3%. In the year-ago quarter, the company reported earnings of 88 cents per share.

Total Revenue

In the quarter under review, JinkoSolar’s total revenues of $848 million surpassed the Zacks Consensus Estimate of $714 million by 18.7%. On a year-over-year basis, the top line increased 98.8% primarily on the back of higher shipments as well as electricity revenues from solar projects.

Quarterly Highlights

In the first quarter of 2016, total solar product shipments were 1,600 megawatts (MW), up 102.7% year over year primarily due to higher shipments of solar modules, silicon wafers and solar cells. Out of total shipments, nearly 166 MW were used in its downstream projects.

First-quarter gross margin increased to 21.3% from 20.3% in the first quarter of 2015. The improvement in gross margin was primarily due to a decline in costs and higher gross margins from the newly completed solar power projects ramping up to full capacity.

JinkoSolar’s total operating expenses shot up 80.3% year over year to $91.8 million, primarily due to increases in shipping and warranty costs and provisions of accounts receivable.

The company incurred $19.6 million as interest expenses, up 100.9% year over year mainly due to an increase in loans used for solar power projects.

Financial Condition

As of Mar 31, 2016, JinkoSolar had cash and cash equivalents of $522.9 million, down from $654.4 million as of Dec 31, 2015.

Total interest bearing debts as of Mar 31, 2016, were $1.61billion compared with $1.59 billion as of Dec 31, 2015.

Guidance

JinkoSolar expects second-quarter 2016 total solar module shipment in the range of 1.6–1.7 Gigawatts (GW). For 2016, the company expects total solar module shipments in the band of 6–6.5 GW.

JinkoSolar expects 600 MW to 800 MW of total project development in 2016 on the back of its downstream business.

Other Company Releases

ReneSola (NYSE:SOL) reported earnings of 6 cents per ADS in the first quarter of 2016. The Zacks Consensus Estimate was a loss of 4 cents.

JA Solar Holdings Co. Ltd. (NASDAQ:JASO) posted first-quarter 2016 adjusted earnings of 36 cents per diluted American Depositary Share (ADS), beating the Zacks Consensus Estimate of 22 cents by a wide margin of 63.6%.

Canadian Solar Inc. (NASDAQ:CSIQ) reported first-quarter earnings of 37 cents per share, beating the Zacks Consensus Estimate of 13 cents by a whopping 184.6%.

Zacks Rank

JinkoSolar currently carries a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

JA SOLAR HOLDGS (JASO): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

JINKOSOLAR HLDG (JKS): Free Stock Analysis Report

CANADIAN SOLAR (CSIQ): Free Stock Analysis Report

Original post

Zacks Investment Research