JinkoSolar Holding Co (JKS) stock took a significant hit in premarket trading on Friday after the company released its second-quarter earnings report. While the solar module manufacturer reported adjusted earnings per ADS (American Depositary Share) that surpassed analyst expectations, revenue fell short, leading to a decline in share price.
Revenue for the quarter decreased by 21.6% year-over-year to $3.31 billion, missing the analyst consensus estimate of $3.91 billion. This decline was attributed to a drop in the average selling price of solar modules, resulting in a gross margin of 11.1% for the quarter, compared to 15.6% in the same period last year. Despite the revenue miss, JinkoSolar’s adjusted earnings per ADS came in at $0.99, exceeding the analyst consensus estimate of $0.17.
On the positive side, JinkoSolar saw a significant increase in quarterly shipments, rising 36.0% year-over-year to 25,318 MW (megawatts). This included 23,822 MW for solar modules and 1,496 MW for cells and wafers. The module shipments specifically grew by 34.1% year-over-year. However, the company’s operating income suffered a loss of 1.14 billion Chinese Yuan ($156.6 million), compared to a profit of 1.54 billion Chinese Yuan in the same period last year. This further contributed to the stock’s decline.
Despite the mixed results, JinkoSolar remains optimistic about its future. The company anticipates third-quarter module shipments to range between 23.0 GW (gigawatts) and 25.0 GW, and it reiterated its fiscal 2024 module shipment target of 100.0 GW to 110.0 GW. JinkoSolar also expects to reach an annual production capacity of 120.0 GW for mono wafers, 110.0 GW for solar cells, and 130.0 GW for solar modules by the end of 2024.
JinkoSolar’s stock has been under pressure in recent months, with a decline of 46% in the past year. The stock traded down by 5.19% at $17.16 in premarket trading on Friday.
