NEW YORK (TheStreet) -- Yingli Green Energy (YGE) was rising 5.25% to $6.22 at 10:32 a.m. on Tuesday after the company announced that it expects greater solar panel shipments when it reports its fourth-quarter earnings on March 18.
The company estimated an 11% to 12% sequential increase in panel shipments in the fourth quarter, which marks an increase from its previous estimates of a mid- to high-single digit increase.
Yingli also forecast a decrease from its previous expectations in its fourth-quarter gross margins. The company now sees a 12% to 13% range, down from its earlier forecast of a 14% to 16% range. The reduced forecast stems from the disposal of low-efficiency PV cell inventory and year-end tax adjustments.
TheStreet Ratings team rates YINGLI GREEN ENERGY HLDGS CO as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate YINGLI GREEN ENERGY HLDGS CO (YGE) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity and poor profit margins."