Shares of JinkoSolar Holding Co. (NYSE:JKS) plunged as much as 27.5% in trading Monday after announcing second-quarter 2018 results. The stock recovered some of the losses but was still down 13.3% at 11:10 a.m. EDT.
Shipments jumped 38.7% to 2,794 megawatts (MW) and revenue was up 32.7% to $915.9 million. But income from operations was just $14.3 million, or $0.41 per share on a non-GAAP basis.
Analysts were expecting $909.6 million, which JinkoSolar easily topped, but they expected $0.55 per share. The big earnings miss is the reason shares are dropping today.
The solar panel industry has gotten more competitive in 2018 with manufacturers fighting over a shrinking business in China and the U.S. That's driven price competition and now lower margins for JinkoSolar. What's troubling for investors is that installations are expected to fall even more in the second half of the year, which could mean JinkoSolar will start reporting losses again.