JinkoSolar Holding Co. Ltd. Earnings: Here’s Why Investors are Buying Shares Now

JinkoSolar Holding Co., Ltd. (NYSE:JKS) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 10.33%.

JinkoSolar Holding Co., Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.56 in the quarter versus EPS of $-2.00 in the year-earlier quarter.

Revenue: Rose 47.61% to $287.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: JinkoSolar Holding Co., Ltd. reported adjusted EPS income of $0.56 per share. By that measure, the company beat the mean analyst estimate of $-0.07. It missed the average revenue estimate of $298.84 million.

Quoting Management: “I am pleased to report JinkoSolar’s first quarter of profitability since the third quarter of 2011,” commented Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer. “During the second quarter of 2013, increasing demand from regions where we have made strategic investments and our ability to efficiently execute our strategy further solidified our leading position in the global PV market. We increased shipment volumes and expanded our gross margin to 17.7%, making JinkoSolar among the first Chinese module producers to return to net profitability since the downturn. We recently increased our integrated production capacity from 1.2 GW to 1.5 GW as a result of technological improvements and the upgrading of production lines. By persevering through our strategy, we have successfully navigated the rapidly changing solar power environment to emerge a stronger, profitable, more nimble company. Most importantly, we expect to realize net profitability for the entire year as we are confident that this quarter’s strong operational and financial performance is indicative of our future performance. Module shipments for 2013 have been revised upwards and are expected to be in the range of 1.5 GW to 1.7 GW, compared to our previous outlook of 1.2 GW to 1.5 GW.”

Key Stats (on next page)…

Revenue increased 53.63% from $187.2 million in the previous quarter. EPS increased to $0.56 in the quarter versus EPS of $-0.92 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.69 to a loss $0.26. For the current year, the average estimate has moved up from a loss of $3.31 to a loss of $1.36 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)