Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of JinkoSolar Holdings Popped 20.5% Today

By Travis Hoium – Nov 26, 2018 at 11:19AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Could 2018 be a lot better than expected for solar stocks?

What happened 

Shares of solar manufacturer JinkoSolar Holdings (JKS -3.93%) jumped as much as 20.5% in trading Monday after the company reported third-quarter 2018 results. Shares bounced around early in trading and were up 15% as of 11:10 a.m. EST.

So what

Total module shipments increased 24.4% versus a year ago to 2,934 megawatts (MW), and revenue rose 4.3% to $974.8 million. Net income was $27.5 million, or $30.0 million on a non-GAAP basis, which pulls out one-time items. That translated to earnings of $0.76 per share, which is a great quarter for a company whose stock closed at $9.22 per share last week. 

Solar farm in the desert.

Image source: Getty Images.

Analysts were only expecting $934.6 million of revenue and a loss of $0.09 per share, so the big earnings beat is what's driving shares higher to start the week. 

Now what

The profit was so shocking because investors are expecting a big plunge in solar demand in the second half of 2018. China cut solar incentives, and installations were expected to drop as a result. JinkoSolar's management said installations weren't as slow as expected, and international markets picked up the slack, which is why the company was able to perform so well last quarter. If these results continue, it may be time to get bullish on solar stocks again. 

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

JinkoSolar Holding Co., Ltd. Stock Quote
JinkoSolar Holding Co., Ltd.
JKS
$52.06 (-3.93%) $-2.13

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
332%
 
S&P 500 Returns
104%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/30/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.