Why Yingli Green Energy Holding Co. Ltd. Shares Jumped Today

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 Yingli Green Energy Holding (NYSE: YGE  ) rose 10% Tuesday after the Chinese solar specialist announced weaker than expected unaudited first-quarter results, but followed up with strong guidance.

So what: Though Yingli Green Energy's quarterly revenue only rose slightly year over year to $432.2 million, its adjusted net loss narrowed by nearly half to $54.5 million, or $0.35 per American depositary share. Even so, analaysts went into the report modeling a net loss of $0.24 per share on sales of $464 million.

Despite the miss, however, Yingli insisted it still expects to reach its full-year 2014 photovoltaic module shipment target of 4 to 4.2 gigawatts, an increase of 23.7% to 29.9% from fiscal 2013.

Now what: Yingli Green Energy CEO Liansheng Miao explained, "Since the beginning of the second quarter, we have seen substantial upside in demand from China as well as emerging markets such as South America, Southeast Asia and Africa, we expect this trend to continue toward the second half of 2014."

Shares don't look particularly cheap trading around 28 times next year's expected earnings, but that's not entirely uncommon for a company on the cusp of achieving sustained profitability. If Yingli does indeed reach its goals by the end of the year, patient long-term investors stand to be handsomely rewarded.

OPEC is absolutely terrified of this game changer
If solar isn't your bag, don't worry. Imagine another company that rents a very specific and valuable piece of machinery for $41,000 per hour (That's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report reveals the company we're calling OPEC's Worst Nightmare. Just click HERE to uncover the name of this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

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: 2998152, ~/Articles/ArticleHandler.aspx, 8/29/2015 2:26:55 AM

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...

Steve Symington

Technology and consumer goods specialist for the Fool. Steve looks for responsible businesses which positively shape our lives. Then, he invests accordingly. Enjoy his work? Connect with him on Twitter & Facebook so you don't miss a thing.

Today's Market

updated 5 hours ago Sponsored by:
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 1.21 0.06%
NASD 4,828.33 15.62 0.32%

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

8/28/2015 4:02 PM
YGE $0.80 Down -0.03 -4.04%
Yingli Green Energ… CAPS Rating: *