JA Solar Holdings Earnings: Here’s Why Investors are Buying Shares Now

JA Solar Holdings Co., Ltd. (NASDAQ:JASO) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 12.30%.

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JA Solar Holdings Co., Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.14 in the quarter versus EPS of $-1.00 in the year-earlier quarter.

Revenue: Decreased 56.81% to $109.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: JA Solar Holdings Co., Ltd. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $-1.03. It missed the average revenue estimate of $226.5 million.

Quoting Management: Mr. Baofang Jin, executive chairman and CEO of JA Solar, commented, “Shipments exceeded the high end of guidance in the first quarter thanks to solid sales across our key markets, particularly in regions with higher ASPs, resulting in improved gross margins and a significant reduction in net loss.”
Mr. Jin continued, “We performed especially well in Japan, a high-ASP market, which accounted for a record 38% of our module shipments in the quarter, while module sales to China declined from last quarter due to seasonality and our shift in focus to markets with more attractive margins. We also made further inroads into emerging markets, including in the Asia Pacific, the Middle East, and Africa.”

Key Stats (on next page)…

Revenue decreased 60.27% from $276.63 million in the previous quarter. EPS increased to $0.14 in the quarter versus EPS of $-2.65 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0.95 to a loss $0.79. For the current year, the average estimate has moved up from a loss of $3.96 to a loss of $3.77 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)