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

JA Solar Holdings Co., Ltd. (NASDAQ:JASO) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.27%.

JA Solar Holdings Co., Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $-0.58 in the quarter versus EPS of $-1.85 in the year-earlier quarter.

Revenue: Rose 0.27% to $285.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: JA Solar Holdings Co., Ltd. reported adjusted EPS loss of $0.58 per share. By that measure, the company missed the mean analyst estimate of $-0.54. It beat the average revenue estimate of $250.42 million.

Quoting Management: Mr. Baofang Jin, executive chairman and CEO of JA Solar, commented, “We were encouraged by our performance in the second quarter, with shipments exceeding the high end of our guidance despite the regulatory uncertainty in Europe. Our gross margin once again improved, benefiting from a combination of sustained cost reduction efforts and a more stable pricing environment. We also continued to exercise prudent management of our balance sheet, and posted strong operating cash flow.”

Key Stats (on next page)…

Revenue increased 5.65% from $269.86 million in the previous quarter. EPS increased to $-0.58 in the quarter versus EPS of $-0.85 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0.59 and has not changed. For the current year, the average estimate has moved up from a loss of $3.94 to a loss of $2.09 over the last ninety days.

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