JinkoSolar Holding Earnings: Here’s Why Investors are Not Happy Now

JinkoSolar Holding Co., Ltd. (NYSE:JKS) had a loss and missed Wall Street’s expectations, AND 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 down 2.59%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

JinkoSolar Holding Co., Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-1.26 in the quarter versus EPS of $-2.58 in the year-earlier quarter.

Revenue: Rose 11.24% to $187.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: JinkoSolar Holding Co., Ltd. reported adjusted EPS loss of $1.26 per share. By that measure, the company missed the mean analyst estimate of $-0.80. It missed the average revenue estimate of $244.5 million.

Quoting Management: “Our business continued to face significant challenges during the fourth quarter due to continued module oversupply and the economic uncertainties lingering over the global economy,” commented Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer. “Despite these challenges, we were able to maintain positive gross margins while shipping a record high 1,188.3MW during 2012, of which 912.4MW were solar modules. I believe that these results demonstrate the effectiveness of our strategy and ability to adapt to the changing environment and conditions of our diversified markets and locations.”

Key Stats (on next page)…

Revenue decreased 14.9% from $220.09 million in the previous quarter. EPS decreased to $-1.26 in the quarter versus EPS of $-0.39 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.76 and has not changed. For the current year, the average estimate is a loss of $5.89, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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