Yingli Green (YGE) Q3 Earnings Miss, 2017 Shipment View Up

Yingli Green Energy Holding Company Ltd. (NYSE:YGE) , also known as Yingli Solar, has incurred an adjusted net loss of $2.70 per American Depositary Share (ADS) in third-quarter 2017, wider than the Zacks Consensus Estimate of a loss of $2.61. The company had reported a loss of $2.18 per ADS in the year-ago quarter.

Revenues

Total revenues were $252.3 million, up 15.3% year over year. Revenues also surpassed the Zacks Consensus Estimate of $242 million by 4.3%.

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

Highlights of the Release

Total photovoltaic (PV) module shipments were 597.7 megawatts (MW) in third-quarter 2017 compared with 365.3 MW a year ago.

Gross margin in the reported quarter deteriorated 390 basis points (bps) year over year to 1.6%. Operating expenses were up a whopping 647.7% year over year to $344.7 million.

Operating loss in the quarter under review was $340.7 million, compared with the year-ago quarter’s operating loss of $34 million.

Interest expenses totaled $24.2 million in the reported quarter compared with $24 million in the year-earlier quarter.

Financial Highlights

The company had cash & cash equivalents of $66 million as of Sep 30, 2017, compared with $125.1 million as of Dec 31, 2016.

Long-term debt, excluding current portion, was $460.7 million as of Sep 30, 2017, up from $363.5 million as of Dec 31, 2016.

Guidance

For the fourth quarter, Yingli Green expects PV module shipments in the range of 700-800 MW. The company has raised the shipment expectation to the range of 2.8-2.9 gigawatts (GW) from the earlier 2.5-2.8 GW for 2017.

Peer Releases

First Solar Inc. (NASDAQ:FSLR) reported third-quarter 2017 adjusted earnings of $1.95 per share, beating the Zacks Consensus Estimate of 85 cents by 129.4%.

Canadian Solar Inc. (NASDAQ:CSIQ) posted third-quarter 2017 adjusted earnings of 22 cents per share, in line with the Zacks Consensus Estimate.

SunPower Corp. (NASDAQ:SPWR) reported third-quarter 2017 earnings of 21 cents per share. The Zacks Consensus Estimate was pegged at a loss of 36 cents.

Zacks Rank

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

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