JA Solar Earnings: These Numbers are Burning Investors Now

JA Solar Holdings, Co., Ltd. (NASDAQ:JASO) reported its results for the second quarter. JA Solar Holdings designs, manufactures and markets high-performance solar cells, which are made from specially processed silicon wafers.

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JA Solar Holdings, Co., Ltd. Earnings Cheat Sheet

Results: Loss widened to $72.1 million (37 cents per American Depository Share) from $35.4 million (loss of 22 cents per American Depository Share) in the same quarter a year earlier.

Revenue: Fell 31.1% to $284.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: JA Solar Holdings, Co., Ltd. fell short of the mean analyst estimate of a loss of 13 cents per American Depository Share. It beat the average revenue estimate of $234.6 million.

Quoting Management: Dr. Peng Fang, CEO of JA Solar, commented, “In the second quarter, JA Solar achieved shipments in line with the low end of our guidance and maintained a healthy financial position despite the challenging market environment. Gross margin increased to 4.8% from 2.1% in the first quarter, as a result of our cost reduction efforts and increased operating efficiency. This quarter, modules accounted for more than 60% of revenues and more than 55% of shipments for the first time in our history. Although not as severe as in previous quarters, the downward pressure on pricing continued. In light of this, we focused on sustaining a healthy balance sheet and building our footprint in key growth markets.”

Key Stats:

The company has now missed analyst estimates for the last four quarters. It fell short by 5 cents in the first quarter, by 2 cents in the fourth quarter of the last fiscal year, and by 34 cents in the third quarter of the last fiscal year.

Looking Forward: For the next quarter, analysts are increasingly pessimistic about the company’s performance. The average estimates for the third quarter is at a loss of 9 cents per share, down from 7 cents ninety days ago. The average estimate for the fiscal year has reached a loss of 44 cents per American Depository Share, down from a loss of 32 cents ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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