JA Solar (JASO) Beats, Guides Higher But Shares Slump

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09:13:06 am on August 10, 2010

JA Solar (JASO) has reported strong earnings results this morning, beating analyst estimates and posting significant sequential and quarter over quarter growth.  Traders are selling the news though with the stock down nearly 10% in early trading.  The company reported a non GAAP EPS of .27/share, vs the analyst estimate of .24/share on revenues of $351 million vs the estimate of $304 million.  Sequentially, it’s a modest improvement over last quarter by 15% on the EPS side and 25% on the revenue side.  Quarter over quarter, the increase is big with a 300% jump in revenues and a complete 180 degree move from the .18/share loss they reported in the year ago quarter.

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Looking ahead, the company is raising shipment guidance and now sees full year shipments around 1.35GW which compares to the previous estimate of 1GW.  They expect shipments this quarter to be 375MW which would be another record and big improvement over last quarter when the company reported 311MW.

CEO Peng Fang commented:  “We are pleased to deliver another quarter of record shipments, with strong operating performance.  Our first half 2010 shipment has surpassed our full year shipment in 2009, while our second quarter shipment has exceeded the full year shipment in 2008. Business momentum remains strong, and we continue to see very strong orders from existing and new customers, with customers’ requirements exceeding our productive capacity.

While shares are down significantly today, the stock has looked increasingly bullish in recent weeks and there is support all the way down to the 5.25 level.  It may need to test this level before moving higher again.

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