| Yingli Green (YGE) Q2 Preliminary Results: Margins Shrink | |
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Solar panel manufacturer, Yingli Green Energy Holding Co. Ltd. YGE announced preliminary second-quarter 2015 results and its earnings release date. The company will announce its earnings results before the opening bell on Sep 8, 2015.
Per initial data, Yingli Green projects second quarter 2015 module shipments in the range of 720–730 megawatt (“MW”), within the earlier guided band. Module shipments in the second quarter of 2014 were 887.9 MW. As for margins, Yingli Green did not offer an encouraging figure given the decline in the average selling price of PV modules. A variety of factors leading to a rise in manufacturing cost, including lower capacity utilization, also acted as a drag on margins.
The company estimates that its overall gross margin in the second quarter of 2015 will be in the range of 6–7%, compared with 14.1% recorded in the first quarter of 2015 and 15.6% clocked in the prior-year quarter. The gross margin for the sale of PV module is estimated in the range of 7–8%.
Yingli Green hinted that apart from a drop in the average selling price of PV modules, higher shipments to China also had an adverse impact on the company’s total net revenues for the to-be-announced quarter.
Accounting for the changes that took place in the second quarter, Yingli Green will provide a revised guidance for 2015 shipments when it announces its second quarter results. Until the first quarter earnings call, 2015 PV shipment was projected at 3.6 gigawatts.
As it is, Yingli Green’s “substantial indebtedness” revealed in its 2014 Annual Report is a major headwind that the company has to deal with. The company recently received a notice from NYSE about its non-compliance with the stock exchange’s price criteria for continued listing standard.
Substantial indebtedness along with the company’s inability to report in the green for the past few quarters and now falling margins signal more trouble ahead for the company.
Zacks Rank
Yingli Green currently has a Zacks Rank #3 (Hold). Stocks that are currently better placed in the solar industry are JA Solar Holdings Co., Ltd. JASO, ReneSola Ltd. SOL and SolarEdge Technologies, Inc. SEDG. All three stocks sport a Zacks Rank #1 (Strong Buy).
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Yingli Green Energy Holding Co. Ltd.
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CODE : YGE |
ISIN : US98584B1035 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Yingli Green is based in China. Yingli Green is listed in Germany and in United States of America. Its market capitalisation is US$ 261.7 millions as of today (€ 224.0 millions). Its stock quote reached its highest recent level on May 15, 2009 at US$ 9.62, and its lowest recent point on November 30, 2012 at US$ 1.25. Yingli Green has 181 764 000 shares outstanding. |