US markets
U.S. stocks were in the red on Monday morning ahead of new data that showed rising Covid-19 cases in the U.S. and around the world. The Dow Jones Industrial Average fell 2.93% to 24,854, the S&P 500 index declined 2.48% to 2,996 and the Nasdaq Composite Index was down 1.93% to 9,404.
Gainers
• Electronic Arts Inc. (EA, Financial) +2%
• Take-Two Interactive Software, Inc. (TTWO, Financial) +1.4%
• The Clorox Company (CLX, Financial) +0.24%
Losers
• Carnival Corporation & Plc (CCL, Financial) -7.7%
• United Airlines Holdings, Inc. (UAL, Financial) -7.2%
• American Airlines Group Inc. (AAL, Financial) -6.8%
Global markets
The main European stock markets traded in the green.The UK's FTSE 100 lost 1.39%, France's CAC 40 retreated 0.89%, Germany's Dax was down 1.03% and Spain's Ibex 35 dipped 1.78%.
In Asia, Japan's Nikkei 225 fell 3.47%, India’s BSE Sensex slid 1.63%, Hong Kong's Hang Seng declined 2.16% and China's Shanghai Composite was down 1.02%.
JinkoSolar releases earnings report
Shares of JinkoSolar Holding Co., Ltd. (JKS, Financial) fell more than 4% on pre-market trading Monday morning after the company announced its first-quarter results. The company posted earnings per share of 65 cents, falling short of analysts’ estimates by 35 cents. Revenue of $1.2 billion grew 45.7% year-over-year and beat expectations by $170 million.
CEO Kangping Chen had the following to say:
"JinkoSolar continued to outperform during the quarter despite a very challenging global operating environment. Total solar module shipments, total revenue and gross margin were all within our guidance range for the quarter. Module shipments hit a record high 3,411MW during the quarter while total revenues were US$1.03 billion and gross margin was 19.7% if you exclude the impact from the disposal of two solar power plants in Mexico. As one of the world's leading solar module manufacturers, we have leveraged our deep experience to lead the industry through the pandemic which has allowed us to not only further expand our market share but also create technical standards and develop technological breakthroughs for a variety of products."
Total revenues were 8.48 billion Chinese yuan ($1.20 billion). Excluding the impact from the disposal of the two solar power plants in Mexico, revenues were ¥7.29 billion, having increased 25.1% from the first quarter of 2019.
The gross margin reached 19.5%, which was higher than the 18.2% achieved in the fourth quarter of 2019.
Looking at the financial position, the company had cash and cash equivalents of ¥4.74 billion at the end of the quarter.
Looking ahead, Chen said the “order book for the second quarter and the rest of the year remains strong, and our guidance for total shipments for the full year 2020 remains unchanged at 18 to 20 GW."
John Husmman trimmed his investment in the company by 25% to 75,000 shares. Louis Moore Bacon (Trades, Portfolio), Steven Cohen (Trades, Portfolio) and Caxton Associates (Trades, Portfolio) sold out of the stock.
Disclosure: The author holds no positions in any stocks mentioned.
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