Yingli Green Energy Holding Goes Negative

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Yingli Green Energy Holding (NYS: YGE) reported earnings on May 30. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Yingli Green Energy Holding beat expectations on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped to a loss.


Margins shrank across the board.

Revenue details
Yingli Green Energy Holding tallied revenue of $500.0 million. The 18 analysts polled by S&P Capital IQ wanted to see revenue of $452.3 million on the same basis. GAAP reported sales were 5.2% lower than the prior-year quarter's $527.4 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.29. The 18 earnings estimates compiled by S&P Capital IQ predicted -$0.21 per share. GAAP EPS were -$0.29 for Q1 compared to $0.35 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 7.8%, 1,950 basis points worse than the prior-year quarter. Operating margin was -4.3%, 2,080 basis points worse than the prior-year quarter. Net margin was -9.0%, 1,970 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $492.5 million. On the bottom line, the average EPS estimate is -$0.28.

Next year's average estimate for revenue is $2.06 billion. The average EPS estimate is -$0.88.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,587 members out of 1,656 rating the stock outperform, and 69 members rating it underperform. Among 248 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 235 give Yingli Green Energy Holding a green thumbs-up, and 13 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Yingli Green Energy Holding is hold, with an average price target of $3.97.

Over the decades, small-cap stocks like Yingli Green Energy Holding have produced market-beating returns, provided they're value-priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: 2 Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. 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.

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