Shares of solar manufacturer JinkoSolar (NYSE:JKS) jumped as much as 21.7% in trading Wednesday after the company reported second-quarter 2020 results. Shares kept the momentum going throughout the day and were bouncing near 52-week highs at 3 p.m. EDT, up 20.9% for the day.
Revenue for the quarter was up 22.2% versus a year ago to $1.20 billion, and above management's guidance range of $1.10 billion to $1.18 billion. Gross margin was 17.9%, at the top end of the 16% to 18% guidance. And net income was $45.0 million, or $0.93 per share, easily beating the $0.61 that analysts expected.
There wasn't a lot to complain about from JinkoSolar, and the company continues to expect a strong end to the year. Guidance of 18 gigawatts to 20 gigawatts of shipments remained unchanged, and for the third quarter management expects revenue of $1.22 billion to $1.30 billion with a gross margin of 17% to 19%.
The solar industry is having a much better year than most observers expected, as both manufacturing and construction continue almost unabated by COVID-19. What investors should be most impressed by from JinkoSolar is that margins continue to improve along with shipments, which hasn't always been the case for renewable energy stocks. Management expects this momentum to continue for the foreseeable future, so it's no surprise shares are on the rise again.