Why JinkoSolar Holding Co., Ltd.'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 solar manufacturer JinkoSolar Holding Co., Ltd. jumped as much as 18% in trading today after the company released earnings.
So what: JinkoSolar's third quarter shipments rise 6.1% sequentially to 518.9 MW, revenue was up 11.2% to $320.7 million, and net income was $16.9 million, or $1.44 per share. The results easily beat estimates of $302.2 million in earnings and $0.45 per share in earnings.
Now what: JinkoSolar has one of the better balance sheets of Chinese solar manufacturers and it also has one of the best gross margins at 22.3%. The company was one of the first to move into the systems business, which is now higher margin than selling modules itself. This should be one of the Chinese manufacturers to emerge once the industry consolidates, which is great news for investors long-term.
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The article Why JinkoSolar Holding Co., Ltd.'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.
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