JinkoSolar (JKS 18.04, -0.74) is down 3.9% after reporting mixed earnings and reaffirming its shipment guidance.
The supplier of solar modules, cells, and wafers reported below-consensus first quarter earnings of $0.36 per share on a 1.0% year-over-year decline in revenue to $839.30 million, which was ahead of market expectations.
JinkoSolar shipped 2,068 MW worth of solar modules, which was a record. This was up 29.3% year-over-year and up 19.3% on a sequential basis. However, gross margin declined to 11.2% from 20.5% one year ago. Gross margin in the previous quarter hit 14.3%. The decline resulted from lower average selling prices of solar modules and higher silicon prices and material costs, resulting from shortages.
Operating expenses increased 6.6% year-over-year to $86 million due to increased shipping costs associated with higher total shipments.
Looking ahead, JinkoSolar expects that shipments of modules during the second quarter will be up about 25.0% on a sequential basis due to growth momentum in the U.S., India, and emerging markets. Total shipments are expected between 2.5 GW and 2.6 GW. Full-year shipments are expected between 8.5 GW and 9.0 GW.
Shares of JinkoSolar hit a one-year high on May 25 and they have seen some selling in recent days. Despite today's pre-market decline, the stock is up nearly 20.0% so far in 2017.