What to Expect From Yingli Earnings

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Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) is scheduled to report its first-quarter financial results Friday before the markets open. The consensus estimates from Thomson Reuters call for a net loss of $0.24 per share on $454.6 million in revenue. In the same period of the previous year, the company posted a net loss of $0.35 per share and revenue of $432.2 million.

In its annual Form 20-F filing with the U.S. Securities and Exchange Commission (SEC) in May, this Chinese solar PV maker said, “There is substantial doubt as to our ability to continue as a going concern.” These are not words investors in the company want to hear.

At the time, Yingli stock fell to an all-time low of $0.72, after closing at $1.49 on the previous day. In its filing with the SEC, Yingli noted:

Our ability to continue as a going concern is dependent upon our continued operations, which in turn is dependent upon our ability to meet our financial requirements, raise additional capital, and the success of our future operations, which in turn are subject to various risks discussed herein including, among others, risks relating to economic conditions in our target markets as well as the supply and prices of PV modules in the market, our ability to obtain additional capital or other funding to meet our payment obligations under our debt instruments, our ability to renew our short-term borrowings when they mature, our ability to restructure some of our existing debts if needed, the ability of guarantors of our debt to maintain their financial condition, and our ability to comply with all covenants of our loan agreements or obtain waivers if needed.

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Ahead of earnings a few analysts weighed in on Yingli:

  • Merrill Lynch reiterated an Underperform rating with a $1.60 price objective.
  • Deutsche Bank reiterated a Hold rating with a $2.50 price target.
  • Wolfe Research initiated coverage with an Underperform rating.

Shares of Yingli were down 0.9% to $1.06 Thursday afternoon. The stock has a consensus analyst price target of $2.52 and a 52-week trading range of $0.72 to $4.04.