Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Shares of JinkoSolar Holdings Are Falling Today

By Chris Neiger – Jun 15, 2020 at 10:49AM

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

Investors were expecting more from the company's earnings.

What happened

Shares of JinkoSolar Holdings Co. (JKS -1.38%) fell this morning as investors digested the company's first-quarter 2020 results. The company's stock was down by as much as 11.4% in early-morning trading. 

As of 10:52 a.m. EDT, JinkoSolar shares had dropped 8.8%.

Now what

Excluding the impact from "the disposal of the two solar power plants in Mexico," JinkoSolar's quarterly revenue of $1.03 billion was in line with the company's own revenue guidance range of $1 billion to $1.08 billion.

But it was the company's non-GAAP earnings per share of $0.72 in the quarter that disappointed investors. Analysts' consensus earnings estimate for the quarter was $1 per share. 

Red and green line charts on a black background.

Image source: Getty Images.

Despite investors not being thrilled with the company's latest quarter, JinkoSolar's CEO Kangping Chen said that the company "continued to outperform during the quarter despite a very challenging global operating environment." He added that "total solar module shipments, total revenue and gross margin were all within our guidance range for the quarter."

So what 

The novel coronavirus pandemic has negatively affected JinkoSolar, along with many other companies, with investors pushing the company's share price down 24.9% over the past six months. And with the U.S. and global economies still reeling from COVID-19, JinkoSolar investors can likely expect more uncertainty from the company's stock over the short term.

Chris Neiger 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.
$52.91 (-1.38%) $0.74

*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
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/26/2022.

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.