JinkoSolar Slashes Full-Year Revenue and Shipment Estimate; Shares Plunge in Pre-Market Trading (JKS)

JinkoSolar Holding Co. Ltd. (NYSE: JKS) shares are sinking in pre-market trading today after the China-based company slashed its revenue and shipment forecasts for the full year and the third quarter, becoming the latest Chinese solar-products manufacturer to lower expectations due to depressed demand and oversupply.

JinkoSolar shares fell 7.22% to $7.20 in pre-market trading. The stock has fallen more than 60% this year.

Commenting on the downward revision, Kangpin Chen, CEO of JinkoSolar Holding, said that weak market demand and declining average selling prices throughout the solar supply chain resulted in shipment volumes and revenues that were lower than the company’s expectations in the third quarter.

For the third quarter ended September 30, 2011, the company now expects shipments of 210-220 MW, which is well below the previous estimate of 230-250 MW. For the full year, the company now expects shipments of 870-900 MW, which is below the company’s previous guidance of 950-1000 MW.

JinkoSolar, which has built a vertically integrated solar product value chain from recovered silicon materials to solar modules, also slashed its revenue guidance for the full year and the third quarter ended September 30, 2011.

For the third quarter, the company now expects revenue to come in between $270 million and $280 million, which is well below its previous estimate of $310-$330 million. For the full year, the company expects revenue to come in between $1.1 billion and $1.2 billion, below the previous guidance of $1.4-$1.5 billion.

JinkoSolar Holdings will release its third-quarter financial results later this month.

The downward revision from JinkoSolar highlights the challenges the solar industry is currently facing. Solar products manufacturers have been suffering from lower prices which have been caused by weakening demand and oversupply of low-priced panels from China.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.