JinkoSolar Holding Earnings: Here’s Why the Stock is Rising Now

JinkoSolar Holding Co., Ltd. (NYSE:JKS) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 13.34%.

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JinkoSolar Holding Co., Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.92 in the quarter versus EPS of $-2.55 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 $0.92 per share. By that measure, the company beat the mean analyst estimate of $-1.66. It beat the average revenue estimate of $168.25 million.

Quoting Management: “We are pleased with our substantial progress towards regaining profitability in the face of continued module oversupply and weak global economic growth,” commented Mr. Kangping Chen, JinkoSolar’s Chief Executive Officer. “In the first quarter of 2013, we maintained our leading position in the global PV market, grew our shipments in volume and expanded our geographic reach. As a result of improving ASPs and our competitive cost structure, our gross margin further increased to 12.7%, among the industry’s highest for PV product manufacturers. We believe that this quarter’s results demonstrate the effectiveness of the measures we have taken to diversify our customer base and the improvements in our operational efficiency in a rapidly changing solar power environment.”

Key Stats (on next page)…

EPS increased to $-0.92 in the quarter versus EPS of $-5.04 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.63 to a loss $1.68. For the current year, the average estimate has moved down from a loss of $2.18 to a loss of $5.32 over the last ninety days.

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