Why JinkoSolar's Shares Jumped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Chinese solar manufacturer JinkoSolar jumped as much as 15% today after reporting a surprise quarterly profit.
So what: Shipments of solar modules rose 44.5% from the first quarter to 489.2 MW, and revenue jumped 51.7% to $287.6 million. Gross margin leapt to 17.7% and net income was $8 million, or $0.36 per share. Management also increased full-year shipment guidance to 1.5 GW-1.7 GW from a previous range of 1.2 GW-1.5 GW.
Now what: Management also said there was a rush to buy and install solar panels in Europe before tariffs were put in place, but now that has subsided since a trade agreement was reached. The company is also benefiting from a growing systems business, which comes with higher margins than modules. The company's backlog is approaching 700 MW; of that, 200 MW-300 MW will be completed this year. Don't think that all Chinese solar manufacturers will be reporting profits this quarter because JinkoSolar is in a better strategic position, both from a business and balance sheet standpoint, than its competition.
Interested in more info on JinkoSolar? Add it to your watchlist by clicking here.
The article Why JinkoSolar's Shares Jumped originally appeared on Fool.com.Fool contributor 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.