JinkoSolar Stock Surges as Q3 Profits Beat Estimates

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JinkoSolar publishes Q3 2013 results. The company reports a 6.1% increase in Q3 shipments and net income of $16.9 million, or $1.44 per share. The results easily beat eastimates, causing Jinko’s shares to surge.

JinkoSolar (NYSE: JKS) has published its financial results for the third quarter of 2013. The Chinese company’s third quarter shipments went up 6.1% to reach 518.9MW. JinkoSolar reported reported net income of $16.9 million, or $1.44 per share. According to The Motley Fool, “the results easily beat estimates of $302.2 million in earnings and $0.45 per share in earnings.” Jinko’s shares surged 12.9% to $33.30 at the close in New York, the highest since November 2010.

Q3 highlights

  • Total solar product shipments were 518.9MW, an increase of 6.1% from 489.2MW in Q2 2013 and an increase of 54.8% from 335.2 MW in Q3 2012.
  • As of September 30, 2013, JinkoSolar has completed 105MW worth of solar projects. The company expects an additional 108MW to be completed in the fourth quarter.
  • Total revenues were $320.7 million, up 11.2% from Q2 2013, and up 47.6% from Q3 2013.
  • Electricity revenues generated from solar projects were $6.5 million, representing an increase of 717.8% from Q2 2013.
  • Gross margin was 22.3%, compared with 17.7% in Q2 2013 and 5.8% in Q3 2012.
  • Income from operations was $39.9 million, compared with income from operations of $25.4 million in Q2 2013 and a loss from operations of $18.2 million in Q3 2012.
  • Net income attributable to JinkoSolar’s ordinary shareholders was $16.9 million, compared with a net income attributable to JinkoSolar’s ordinary shareholders of $8 million in Q2 2013 and a net loss attributable to JinkoSolar’s ordinary shareholders of $18.7 million in Q3 2012.
  • Diluted earnings per American depositary share (ADS) was $0.72, compared with a diluted earnings per ADS of $0.36 in Q2 2013 and a diluted loss per ADS of $0.84 in Q3 2012. Each ADS represents four ordinary shares.
  • Cash flow from operating activities was $127.5 million.
  • Non-GAAP net income attributable to JinkoSolar Holding’s ordinary shareholders was $32.2 million, compared with a non-GAAP net income $12.1 million in Q2 2013 and a non-GAAP net loss of $14.3 million in Q3 2012.
  • Non-GAAP basic and diluted earnings per ADS were $1.44 and $1.36, respectively, in Q3 2013.

 

Q4 and Full Year 2013 guidance

For the fourth quarter of 2013, the company expects total solar module shipments to be in the range of 500MW to 530MW.

Full Year 2013 total solar module shipments have been revised upward, and will now be in the range of 1.7GW to 1.8GW compared to the previous guidance of 1.5GW to 1.7GW. By the end of the year, total operational solar PV projects are expected to be in the range of 210MW to 230MW.