Yingli Green Energy Holding (YGE) Stock Climbs On Earnings Expectations


Yingli Green Energy Holding Co Ltd (ADR) (NYSE: YGE)

Yingli Green Energy Holding is having an incredibly strong day in the market today, and for good reason. The company announced that it will soon be reporting its earnings for the first quarter, and is expecting the earnings report to end with positive net income. Today, we’ll talk about the announcement from the company, how the market reacted to the news, and what we can expect to see from YGE moving forward.

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YGE Will Report Earnings Soon

As mentioned above, Yingli Green Energy Holding announced earlier this morning that it will be releasing its unaudited earnings report for the first quarter on June 14th. The report will be released before the opening bell. In the statement, YGE said that, according to preliminary data, it is expecting to report positive net income for the quarter. This is incredibly exciting, as the company hasn’t seen positive earnings since the third quarter of 2011. The company said that its PV module shipments have seen incredible growth in the quarter. Another important factor is that YGE is expecting its gross margins to come in in the range between 18.5% and 20.5%.

It is important to remember that these are preliminary results. The earnings report for the quarter hasn’t been released quite yet, and, until then, these numbers are not yet set in stone. While the company continues an ongoing review of first quarter results before the release of the official earnings report, the numbers can change.

How The Market Reacted To The News

As investors, one of the first things that we learn is that the news moves the market. Any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with that company. Adversely, when negative news is released, declines are likely coming. In the case of Yingli Green Energy Holding, the news that was released surrounding the company today was overwhelmingly positive. After all, what investor wouldn’t want to see profits for the first time since 2011? As a result, we’re seeing strong movement in the value of the stock at the moment. Currently (10:16), the stock is trading at $4.85 per share after a gain of $1.17 per share or, 31.79%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from YGE. While the company has run into issues over the past several years, things are finally starting to look promising with regard to earnings. Ultimately, we’re continuing to see a shift in how consumers view the production of energy, and fossil fuels are no longer the bees knees! As a result, we’re likely to see a continuation of strong sales growth at the company, which will help to improve revenue and gross margins. This should keep YGE in the profits for some time to come.

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What Do You Think?

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