JA Solar Holdings Earnings: Swings to a Loss, Misses Estimates

On top of dropping to a loss in the fourth quarter, JA Solar Holdings, Co., Ltd. (NASDAQ:JASO) also came in short of analyst estimates. 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 Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a loss of $68.2 million (39 cents per diluted share) in the quarter. The semiconductor company had net income of $118.7 million or 59 cents per share in the year-earlier quarter.

Revenue: Fell 48.7% to $309.1 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 11 cents per share. It beat the average revenue estimate of $245.2 million.

Quoting Management: “Despite challenging market conditions, we recorded positive operating cash flow and positive gross margin for the fourth quarter,” said Dr. Peng Fang, chief executive officer of JA Solar. “We are encouraged that shipments for the fourth quarter were well in excess of the high end of our guidance, spurred by sustained, strong demand across our diverse customer base for our high-efficiency cells and modules. Our prudent approach to inventory and cash management enabled us to achieve positive operating cash flow of $86.6 million for the quarter.”

Key Stats:
The company has now come in under analyst forecasts for three quarters in a row. It missed the mark by 34 cents in the third quarter and by 19 cents in the second quarter.

Looking Forward: Analysts seem more negative about the company’s results for the next quarter than a month ago. The average estimate for the first quarter of the next fiscal year has moved from a loss of 10 cents a share to a loss of 11 cents over the last thirty days. The average estimate for the fiscal year is a loss of 25 cents per share, down from 23 cents thirty days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com