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JinkoSolar's (JKS) Q2 Earnings & Revenues Beat Estimates

JinkoSolar Holding Co., Ltd. JKS reported second-quarter 2020 earnings per share of 93 cents, which exceeded the Zacks Consensus Estimate of 40 cents by 132.5%. The bottom line, moreover, improved significantly from the year-ago quarter’s earnings of 18 cents per ADS.

Total Revenues

In the quarter under review, JinkoSolar’s total revenues of $1,196 million (RMB 8.45 billion) beat the Zacks Consensus Estimate of $1,075 million by 11.3%. The top line improved 10% on a year-over-year basis from $1,007 million (RMB 6.91 billion). The upside can be mainly attributed to an increase in solar module shipments.

Quarterly Highlights

In the second quarter, JinkoSolar’s total solar module shipments were 4,469 megawatts (MW), up 32% year over year. The shipments were also within the company’s guidance range of 4.2 GW-4.5 GW.

Its gross margin was 17.9%, within JinkoSolar's guidance range of 16-18%, compared with 16.5% in the second quarter of 2019.

The company’s total operating expenses rose 22% year over year to $152.6 million (RMB 1.08 billion) from $128.7 million (RMB 883.6 million). This rise in expenses stemmed from an increase in shipping costs and warranty costs related to the increase in the shipment of solar modules and an increase in disposal loss on property, plant and equipment.

The company incurred $15 million (RMB106.2 million) as interest expenses, down 9% year over year from $17 million (RMB 116.8 million).

Financial Condition

As of Jun 30, 2020, JinkoSolar had cash and cash equivalents of $969.6 million, up from $557.5 million as of Mar 31, 2020.

Total interest-bearing debts as of Jun 30, 2020, were $2.34 billion compared with $1.81 billion as of Mar 31, 2020.

JinkoSolar Holding Company Limited Price, Consensus and EPS Surprise

JinkoSolar Holding Company Limited price-consensus-eps-surprise-chart | JinkoSolar Holding Company Limited Quote

Recent Business Developments

In June 2020, JinkoSolar announced that it will supply 60.9 MW of bifacial modules for the first industrial hybrid plant in Chile. In July, the company announced supply of 126 MW of solar modules for the expansion of an existing 160 MW solar PV park in Chile.

Also, in July, the maximum solar conversion efficiency of JinkoSolar's large-area N-type monocrystalline silicon solar cells reached 24.79% and has set a world record for large-size contact-passivated solar cells.

Guidance

For the third quarter of 2020, JinkoSolar expects total solar module shipments to be in the range of 5.0 GW-5.3 GW. Total revenues for the third quarter are expected to be in the range of $1.22 billion-$1.30 billion. Gross margin is expected between 17% and 19%.

For 2020, the company projects total solar modules shipment of 18-20 GW.

Zacks Rank

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

Recent Solar Releases

Enphase Energy, Inc. ENPH reported second-quarter 2020 adjusted earnings of 17 cents per share, which surpassed the Zacks Consensus Estimate of 14 cents by 21.4%.

SolarEdge Technologies, Inc. SEDG reported second-quarter 2020 adjusted earnings of 97 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents by 40.6%.

SunPower Corp. SPWR incurred an adjusted loss of 22 cents per share in the June-end quarter, narrower than the Zacks Consensus Estimate of a loss of 42 cents.

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