JinkoSolar Holding (JKS 12.96, -0.94, 6.8%) has slid in premarket after missing earnings expectations.
The manufacturer and developer of solar projects who operates in China, Italy, Chile, Mexico, Brazil, South Africa, United States, United Kingdom, and other countries, reported below-consensus first quarter earnings of $0.05 per share on a 13.2% year/year decline in revenue to $728.10 mln, which was just ahead of expectations.
The decline in revenue occurred due to fewer solar module shipments and a decline in the average selling price of solar modules in 2018.
Gross margin improved to 14.4% from 11.6% on a sequential basis. One year ago, the company reported a gross margin of 11.2%. The improvements were owed to lower silicon prices, which were partially offset by lower average selling prices of modules during the first quarter.
Operating expenses declined 10.3% year/year to $84.70 mln due to lower shipping costs.
Net interest expense rose 49.5% year/year to $13.60 mln due to increased borrowing.
Looking ahead, the company expects that solar module shipments will be between 2.4 GW and 2.5 GW during the second quarter. Shipments for the fiscal year are expected between 11.5 GW and 12 GW. CEO Kangping Chen noted that the company has already filled over 80.0% of its order book for 2018. Overseas orders will represent about 80.0% of total shipments.