Yingli Green Energy Holding Company Limited
) shares dropped more than 8% yesterday after the world's largest
vertically integrated photovoltaic manufacturer reported fourth
quarter 2013 results in the red and also missed the Zacks
The company reported fourth quarter 2013 adjusted loss of 31
cents per American Depositary Share (ADS), wider than the Zacks
Consensus Estimate of a loss of 17 cents. The reported loss was,
however, narrower than the year-ago loss of 93 cents per share.
Loss in the reported quarter was again wider than the loss of 24
cents incurred during the third quarter 2013.
Although the company managed to boost shipments during the
quarter, its massive debt burden and the associated interest
expense led it to incur losses.
In 2013, Yingli Green narrowed its adjusted loss to $1.52 per ADS
from a loss of $2.15 per ADS incurred in 2012.
Yingli Green's revenues in the reported quarter were $613.0
million, lagging the Zacks Consensus Estimate of $651.0 million
by 5.8%. Revenues increased 31.5% from $466.0 million in the
fourth quarter of 2012 and 2.8% from $ 596.3 million in the third
quarter of 2013.
Full year 2013 total revenue also increased 21.2% year over year
to $2,216.5 million. The upcast was mainly due to higher
photovoltaic (PV) module shipments.
Gross profit was $74.6 million or 12.2% of total revenue, as
against a gross loss of $39.8 million or a negative 8.5% in the
year-earlier period and a gross profit of $81.5 million or 13.7%
of total revenue in the third quarter of 2013.
Total operating expenses increased 21.9% year over year and 85.8%
sequentially to $172.8 million.
Interest expense surged 26.2% year over year to $42.4 million in
the quarter under review, while it increased 11.5% to $160.5
million in 2013.
Total shipments comprising shipments of PV systems in the
reported quarter jumped 11.4% sequentially.
In 2013, total shipments were 3,234.3 megawatt (MW), an increase
of 40.8% from 2,297.1 MW in 2012.
At the end of 2013, Yingli Green had a cash balance of $462.2
million. Long-term debt, excluding current portion, was $678.6
million versus $654.3 million at 2012 end.
Yingli Green expects to ship 4.0-4.2 gigawatt (GW) of PV module
for 2014, an impressive increase of 29.4% to 32.6% over 2013
levels. For 2014, the company plans to establish its position in
China, the U.S., Japan, and other emerging markets, such as
Africa, South America, and Southeast Asia. It also expects to
return to profitability by the end of this year.
Solar cell manufacturer
Canadian Solar Inc.
) reported earnings of 39 cents per share in the fourth quarter
of 2013 as against a loss of $2.43 per share in the year-ago
quarter. The bottom line, however, came in below the Zacks
Consensus Estimate of 49 cents by 20.4%.
inkoSolar Holding Co. Ltd.
) reported fourth quarter 2013 results with adjusted earnings per
ADS of $1.28 (adjusted earnings of 32 cents per share) coming in
ahead of the Zacks Consensus Estimate of 86 cents. The company
reversed its year-ago adjusted loss per ADS of $5.06 (adjusted
loss $1.26 per share) in the reported quarter.
Yingli Green, with its main focus on the Chinese market, where
solar-panel margins are thinner, not only missed the consensus
expectation but also revealed that it won't be profitable until
the third quarter of 2014. The company still needs to get rid of
its huge $2.5 billion of debt.
However, the company is stepping up its efforts to build solar
farms. It has completed 128 MW in projects in 2013 and expects to
complete construction of 400 MW to 600 MW of projects in China in
Yingli Green's numbers look particularly disappointing when most
of the solar giants are returning to profit after two years of a
punishing downturn. Presently, China, Japan and the U.S. are
driving demand for solar panels. Solar majors active in Asia are
expected to gain traction as the industry oversupply shrinks.
Notably, 2013 showed astounding scale in the Chinese market,
overtaking longtime leader Germany. This year, solar developers
around the globe are expected to install record capacity as a
booming Chinese market drives growth.
Yingli Green currently has a Zacks Rank #3 (Hold). Promising
companies in the space include Canadian Solar with a Zacks Rank
#1 (Strong Buy), and JinkoSolar and
Trina Solar Limited
), each with a Zacks Rank #2 (Buy).
CANADIAN SOLAR (CSIQ): Free Stock Analysis
JINKOSOLAR HLDG (JKS): Free Stock Analysis
TRINA SOLAR LTD (TSL): Free Stock Analysis
YINGLI GREEN EN (YGE): Free Stock Analysis
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