Solar Module Company JinkoSolar's Q2 Earnings: 22% Revenue Drop, Margins Hit By Lower Average Selling Price

JinkoSolar Holding Co JKS stock tanked Friday premarket after the company reported second-quarter results.

The solar module manufacturer’s revenue decreased 21.6% year-over-year to $3.31 billion, missing the analyst consensus estimate of $3.91 billion. Adjusted earnings per ADS of $0.99 beat the analyst consensus estimate of $0.17.

Quarterly shipments increased 36.0% Y/Y to 25,318 MW (23,822 MW for solar modules and 1,496 MW for cells and wafers). The module shipments grew by 34.1% Y/Y.

Gross margin for the quarter stood at 11.1%, compared to 15.6% a year ago, reflecting decreases in the average selling price of solar modules.

Loss from operations was 1.14 billion Chinese Yuan or $156.6 million, compared to 1.54 billion Chinese Yuan income from operations a year ago. 

JinkoSolar’s adjusted net income was 378.5 million Chinese Yuan ($52.1 million), compared to 1.43 billion Chinese Yuan a year ago.

As of June 30, 2024, JinkoSolar held $1.91 billion in cash, equivalents, and inventories were $2.68 billion.

Chair and CEO Xiande Li: “Prices in several segments of the industry chain declined slightly on a sequential basis, leading us to adjust our production scheduling strategy and utilization rates for different processes.”

Outlook: JinkoSolar expects its third-quarter module shipments to be around 23.0 GW-25.0 GW.

The company reiterated fiscal 2024 module shipments of 100.0 GW-110.0 GW. JinkoSolar expects its annual production capacity for mono wafers, solar cells, and solar modules to reach 120.0 GW, 110.0 GW (prior 95.0 GW), and 130.0 GW by the end of 2024.

JinkoSolar Holding stock plunged 46% in the last 12 months.

Price Action: JKS stock traded lower by 5.19% at $17.16 premarket at the last check Friday.