Earnings Preview: Yingli Green Energy Holding

| About: Yingli Green (YGE)

Yingli Green Energy Holding Co. Ltd. (NYSE:YGE) is scheduled to report its Q2 2012 results on August 29, 2012, before the market opens. The street expects EPS and revenue of ($0.30) loss and $490.99M, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from YGE and the news from its closest competitors.

Recent EPS Actuals vs. Estimates

The company has failed to meet analysts' estimates in the last three quarters. In the last quarter it reported ($0.29) loss per share, failing to meet analyst estimates of ($0.21) loss.

The consensus EPS estimate is ($0.30) loss based on 19 analysts' estimates, down from $0.36 a year ago. Revenue estimates are $490.99M, down from $680.56M a year ago. The median target price by analysts for the stock is $3.00.

Average recommendation: Hold

Source: Marketwatch

Latest News

  • On August 20, 2012, Yingli Green Energy Holding Company Limited announced that its multicrystalline PV modules successfully passed the Potential Induced Degradation (NASDAQ:PID) test conducted by Intertek Group plc ("Intertek"). This test was conducted to assess power output of the Company's multicrystalline PV modules under severe conditions of high voltage, high temperature and high humidity. According to the test results, Yingli Solar modules ranked at the top of the class.
  • On August 13, 2012, Yingli Green Energy Holding Company Limited announced that its wholly-owned subsidiary, Yingli Green Energy Japan Corporation, Ltd. ("Yingli Japan") obtained the first JIS Q 8901 Certification from TUV Rheinland Japan Ltd ("TUV Rheinland Japan").
  • On August 7, 2012, Yingli Green Energy Holding Company Limited announced that the Company has appointed Ledico Ltd. ("Ledico") as its exclusive sales partner in Israel. According to the partnership agreement, Ledico will sell and promote Yingli Solar modules in Israel.
  • On August 2, 2012, Yingli Green Energy Holding Company Limited preannounced its financial results for the quarter ended June 30, 2012. Based upon preliminary data, the Company expects its PV module shipment volumes for the second quarter of 2012 to increase by 13% to 14% over the previous quarter, compared to its previously provided guidance of an approximately 15% increase.
  • On July 6, 2012, Yingli Green Energy Holding Company Limited announced the establishment of its regional headquarters in Sydney, Australia.
  • On May 3, 2012, Yingli Green Energy Hold. Co. Ltd. announced that one of its primary operating subsidiaries, Yingli Energy (NASDAQ:CHINA) Company Limited (Yingli China), has successfully completed its issuance of 1.5 billion RMB-denominated unsecured medium-term notes (the Issuance).


JA Solar Holdings (NASDAQ:JASO), JinkoSolar Holding (NYSE:JKS), LDK Solar (NYSE:LDK), Suntech Power Holdings (NYSE:STP), and Trina Solar (NYSE:TSL) are considered major competitors for Yingli Green Energy Holding and the table below provides the key metrics for these companies and the chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

YGE Chart

YGE data by YCharts

Competitors' Latest Development

  • On August 22, 2012, Cohen Milstein Sellers & Toll PLLC announced that it is conducting an investigation to determine whether Suntech Power Holdings Co Ltd (Suntech or the Company) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
  • On August 15, 2012, Suntech Power Holdings Co Ltd announced that that Dr. Zhengrong Shi will serve as Executive Chairman of the Board and assume the position of Chief Strategy Officer of the Company.
  • On August 14, 2012, Suntech Power Holdings Co Ltd announced that it has obtained court orders to freeze the worldwide assets of GSF Capital and Mr. Javier Romero and to have an independent, court-appointed manager (the Manager) oversee their assets.
  • On August 11, 2012, Faruqi & Faruqi, LLP, a national securities law firm, announced that it is investigating potential securities fraud at Suntech Power Holdings Co. Ltd. The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) Suntech had not been pledged EURO 560 million in German government bonds from GSF Capital Pte Ltd. (NYSE:GSF), in connection with its May 2010 financing arrangement with the China Development Bank; (2) the Company lacked internal and financial controls; and (3) as a result, the Company's financial statements were materially false and misleading at all relevant times.
  • On August 7, 2012, Ja Solar Holdings Co Ltd announced that it has signed a supply agreement with A Shade Greener (NYSE:ASG), a UK-based PV installer and installer of free solar panels to the residential market in the United Kingdom.
  • On July 30, 2012, Ja Solar Holdings Co Ltd announced that it entered into a share transfer agreement (the Agreement) on July 23, 2012 with M.SETEK Co., Ltd. (M.SETEK), a polysilicon and solar wafer manufacturer in Japan controlled by AU Optronics Corp.
  • On June 26, 2012, JinkoSolar Holding Co., Ltd. announced that the Company will supply its modules to a 5.75MW array of solar panels located on the site of the former Canton landfill in Canton, MA. In partnership with Boston-based renewable energy project developer Southern Sky Renewable Energy LLC (SSRE), the project brings life to the two decades-long unused space, serving as a valuable revenue generator and clean power solution for the local community.
  • On June 26, 2012, LDK Solar Co Ltd announced that based upon current business conditions for the second quarter of 2012, it estimates revenue to be in the range of $220-$270 million.
  • On June 26, 2012, Trina Solar Ltd announced that its board of directors and audit committee approved the appointment of KPMG as its independent auditors for the year ending December 31, 2012.
  • On June 14, 2012, Ja Solar Holdings Co Ltd announced that Board of Directors has approved a share repurchase program, effective immediately, that authorizes JA Solar to repurchase up to a USD100 million worth of its issued and outstanding American Depositary Shares (ADSs) prior to September 30, 2012.
  • On June 4, 2012, LDK Solar Co Ltd announced that the Company has signed three multi-year engineering, procurement, and construction (NYSE:EPC) agreements. All three projects are located in the Gansu province of the People's Republic of China.
  • On May 21, 2012, JinkoSolar Holding Co., Ltd. announced it will provide modules for a 50 megawatt (MW) solar project operated by state-owned renewable energy development company GSHHSD in northwestern China.
  • On April 30, 2012, LDK Solar Co Ltd reaffirmed fiscal 2012 guidance and expects revenue in the range of $2.0-$2.7 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $2.0 billion for fiscal 2012.
  • On April 24, 2012, JinkoSolar Holding Co., Ltd. announced that JinkoSolar Co., Ltd., the Company's wholly owned subsidiaries, successfully issued unsecured one-year short-term bonds with a principal amount of RMB300 million on April 23, 2012.
  • On March 19, 2012, LDK Solar Co Ltd revised announced that for the fourth quarter of 2012, LDK Solar revised its guidance for revenue to be in the range of $440 million to $450 million.
  • On March 1, 2012, Sunways AG announced that the increase in the share capital of the Company to EUR 17,378,613 has been validly completed. Sunyways AG issued 5.79 million shares.

Technical Overview

The stock has a market capitalization of $320.99M and is currently trading at $2.05 with a 52 week range of $1.50 - $6.57. The stock's year-to-date performance has been -46.05%. It is currently trading above its 20-day SMA, but below 50- and 200-day SMAs.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Tagged: , Semiconductor - Integrated Circuits, China, Earnings
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