JinkoSolar Holding Company Limited


JKS

is set to report third-quarter 2020 results on Dec 7, before market open.

In the trailing four quarters, it came up with an earnings surprise of 9.29%, on average.

Let’s take a closer look at the factors likely to influence the company’s upcoming quarterly results.

Factors to Consider

From the latter part of the May-June 2020 quarter, JinkoSolar started witnessing improved demand for its modules in the overseas market, overcoming the adverse impacts of the coronavirus outbreak. Such demand growth may have boosted shipments during the third quarter, thereby contributing to its quarterly revenues.

In September 2020, JinkoSolar announced that it has supplied 611MW of Tiger bifacial transparent backsheet modules to Trung Nam Group, which were installed at the Thuan Nam solar power plant project in Vietnam.

So, we remain optimistic about the company’s revenue performance in the soon-to-be-reported quarter. The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.29 billion, which indicates a solid 23.1% improvement from the year-ago quarter’s reported figure.

Meanwhile, supply shortage of polysilicon has pushed up costs in the solar supply chain in the recent past, which in turn might have weighed on third-quarter gross margin. Nevertheless, improved shipment volumes induced by demand growth are expected to have benefited production efficiency, which along with established infrastructure of integrated manufacturers like JinkoSolar must have bolstered its quarterly earnings.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 85 cents per share, which indicates a solid 30.8% improvement from the year-ago quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for JinkoSolar this time around. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.

Earnings ESP

: The company’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

Zacks Rank

: JinkoSolar currently carries a Zacks Rank #3. You can see


the complete list of today’s Zacks #1 Rank stocks here


.

Some Q3 Solar Releases

Enphase Energy


ENPH

reported third-quarter 2020 adjusted earnings of 20 cents per share, which missed the Zacks Consensus Estimate of 24 cents by 25%.

First Solar


FSLR

reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.

SunPower


SPWR

incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.

These Stocks Are Poised to Soar Past the Pandemic

The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.

Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.

See the 5 high-tech stocks now>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.

Click to get this free report

To read this article on Zacks.com click here.

Zacks Investment Research