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JinkoSolar Holding (JKS) to Report Q2 Earnings: What's Up?

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JinkoSolar Holding Company Limited (JKS - Free Report) is expected to report second-quarter 2019 results on Aug 30, before the market opens.

In the last reported quarter, the company witnessed a negative earnings surprise of 47.83%. The bottom line also missed the Zacks Consensus Estimate in three of the trailing four quarters, the average miss being 22.58%.

Let's see how things are shaping up prior to this announcement.

Factors at Play

Increasing solar demand worldwide has been steadily driving module sales for JinkoSolar, particularly from overseas market. The second quarter of 2019 was no exception. In May 2019, the company announced that it has supplied 250,000 Pieces of its 345Watt-1500V monocrystalline standard modules to one of the largest solar power plant in Colombia. In June, it supplied 351MW of solar modules to Power Construction Corporation of China and 258MW of monocrystalline PERC double glass modules to Trung Nam Group.

In July, JinkoSolar supplied 7.8MW of solar modules that were installed at two PV power plants in Hungary. In the same month, 95 MW of highly-efficient solar panels were supplied to Vena Energy Australia. Moreover, the company launched the "Swan" bifacial module – the latest addition to its range of premium Cheetah products.

Backed by such solid shipments and innovation, the company is likely to see solid top-line growth in the soon-to-be-reported quarter.

For second-quarter revenues, the Zacks Consensus Estimate is pegged at $928.4 million, suggesting an improvement of 1.4% from the figure reported in the year-ago quarter.

This apart, JinkoSolar has been witnessing a notable increase in its operating expenses over the last few quarters on account of increased shipping costs. Such increased shipping costs can be attributable to the fact that significant percentage of its modules are shipped to the overseas market. We may expect this trend to persist in the soon-to-be-reported quarter, which in turn may weigh on its quarterly earnings.

The Zacks Consensus Estimate for second-quarter earnings stands at 28 cents, implying a 31.7% decline from the figure reported in the year-ago quarter. The company had delivered earnings of 41 cents per share in second-quarter 2019.

Earnings Whispers

Our proven model does not show that JinkoSolar is likely to beat bottom-line estimates in second-quarter 2019. This is because a stock needs to have both — a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) — for this to happen. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially if they have a negative Earnings ESP. This is not the case here, as you will see below. You can see the complete list of today's Zacks #1 Rank stocks here.

Earnings ESP: JinkoSolar has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank of 4.

Recent Solar Releases

SunPower Corp. incurred adjusted loss of 22 cents per share in the second quarter of 2019, wider than the Zacks Consensus Estimate of a loss of 9 cents. The company incurred a loss of a penny per share in the year-ago quarter.

Enphase Energy, Inc. (ENPH - Free Report) reported second-quarter 2019 adjusted earnings of 18 cents per share, which surpassed the Zacks Consensus Estimate of 13 cents by 38.5%. The bottom line also improved from a penny registered in the prior-year quarter.

First Solar Inc. (FSLR - Free Report) incurred a loss of 18 cents per share in second-quarter 2019, while the Zacks Consensus Estimate for earnings was pegged at 2 cents. The reported figure, however, improved from the prior-year quarter's loss of 46 cents per share.

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