What: Shares of solar manufacturer JinkoSolar Holding Co., Ltd. (NYSE:JKS) fell 13% in March after reporting earnings that failed to inspire investors.
So what: Total module shipments jumped over 50% in the quarter to 1.7 GW and revenue rose 50% to $937.7 million. Gross margin fell from 22.8% a year ago to 19.5% in the quarter, although earnings per ADS rose 43% to $53.9 million, or $1.68 per share.
On the balance sheet, where many Chinese companies have run into problems, long-term debt was $1.59 billion, with $760.3 million associated with power projects. JinkoSolar's transition to building more projects has been more successful than most solar manufacturers', and investors should see that as a strength for the company.
Now what: Shares of Chinese solar manufacturers can be up and down, depending on the market's mood -- and in March the market didn't see a reason to buy. That could partly be due to lagging oil prices, which had started to rise sharply in February. It could also be a less bullish sentiment for solar stocks, which has affected most large module suppliers. But long-term, JinkoSolar is making the right moves to be competitive, so I wouldn't bail out on shares after a bad March because; this volatility is just part of investing in the solar industry.
Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.