Yingli Green (YGE) Q2 Loss Wider Than Expected, View Up

Chinese solar panel manufacturer, Yingli Green Energy Holding Company Ltd. (NYSE:YGE) , also known as Yingli Solar, reported adjusted net loss of $2.60 per American Depositary Share (ADS) in second-quarter 2017, wider than the Zacks Consensus Estimate of a loss of $2.05. Notably, the company had posted earnings of 90 cents per ADS in the year-ago quarter.

Yingli Green Energy Holding Company Limited Price, Consensus and EPS Surprise

Yingli Green Energy Holding Company Limited Price, Consensus and EPS Surprise | Yingli Green Energy Holding Company Limited Quote

Revenues

Total revenue was $468.1 million, up 23.2% year over year. Revenues also surpassed the Zacks Consensus Estimate of $415 million by 12.8%.

Highlights of the Release

Total photovoltaic (PV) module shipments were 1,146.6 megawatts (MW) in second-quarter 2017 compared with 662 MW in second-quarter 2016.

Gross margin in the reported quarter deteriorated a whopping 1650 basis points (bps) year over year to 1.7%. Operating expenses were down 23.8% to $34.6 million.

Operating loss in second-quarter 2017 was $26.7 million against the year-ago quarter’s operating income of $23.8 million.

Interest expenses were $24.4 million in the reported quarter compared with $23.9 million in the year-ago period.

Financial Highlights

The company had cash & cash equivalents of $97.1 million as of Jun 30, 2017 compared with $125.1 million as of Dec 31, 2016.

Long term debt, excluding current portion, was $368.4 million as of Jun 30, 2017, up from $363.5 million as of Dec 31, 2016.

Guidance

For third-quarter 2017, Yingli Green expects PV module shipments in the range of 550–600 MW. The company has raised its expectation for shipments to the range of 2.5–2.8 GW from the earlier range of 2.1–2.2 GW for 2017.

Peer Releases

First Solar Inc. (NASDAQ:FSLR) reported second-quarter 2017 earnings of 64 cents a share. The Zacks Consensus Estimate was pegged at a loss of 4 cents.

Canadian Solar Inc. (NASDAQ:CSIQ) incurred adjusted loss of 15 cents per share in second-quarter 2017, narrower than the Zacks Consensus Estimate of a loss of 16 cents.

SunPower Corp. (NASDAQ:SPWR) posted second-quarter 2017 loss of 39 cents per share, narrower than the Zacks Consensus Estimate of a loss of 63 cents.

Zacks Rank

Yingli Green Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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