Why JinkoSolar's Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Chinese solar manufacturer JinkoSolar (NYSE: JKS  ) jumped as much as 15% today after reporting a surprise quarterly profit.

So what: Shipments of solar modules rose 44.5% from the first quarter to 489.2 MW, and revenue jumped 51.7% to $287.6 million. Gross margin leapt to 17.7% and net income was $8 million, or $0.36 per share. Management also increased full-year shipment guidance to 1.5 GW-1.7 GW from a previous range of 1.2 GW-1.5 GW.  

Now what: Management also said there was a rush to buy and install solar panels in Europe before tariffs were put in place, but now that has subsided since a trade agreement was reached. The company is also benefiting from a growing systems business, which comes with higher margins than modules. The company's backlog is approaching 700 MW; of that, 200 MW-300 MW will be completed this year. Don't think that all Chinese solar manufacturers will be reporting profits this quarter because JinkoSolar is in a better strategic position, both from a business and balance sheet standpoint, than its competition.

Interested in more info on JinkoSolar? Add it to your watchlist by clicking here.

Read/Post Comments (0) | Recommend This Article (0)

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2595500, ~/Articles/ArticleHandler.aspx, 9/27/2016 1:38:46 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,222.14 127.31 0.70%
S&P 500 2,159.97 13.87 0.65%
NASD 5,297.54 40.05 0.76%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 1:21 PM
JKS $15.46 Up +0.43 +2.86%
JinkoSolar Holding… CAPS Rating: **