JA Solar (JASO) Posts Strong Quarter On Record Shipments, Raises Guidance

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08:59:11 am on February 11, 2010

The China solar stocks could use some good news after being pummeled in the past month and JA Solar (JASO) is providing it with its earnings results this morning.  The company recorded record shipments in the quarter, improved margins, beat the Wall St estimates and raised guidance.  All in all, a well executed quarter from JASO indicating the company is not only a survivor but a company that could be a leader.  They really aren’t far off from the kind of revenues and profits that Trina Solar (TSL) and Suntech (STP) are generating.

The company reported an EPS of .14/share, its 2nd straight profitable quarter after a string of losses and a big improvement from the year ago quarter when the company reported a .02/share loss.  Wall St estimates called for a .11/share profit.  Revenues beat as well at $238 million and represents a 66% increase over the year ago quarter.

Topping off a great quarter, the company raised guidance for the full year 2010.  They now expect shipments to exceed 910MW compared to previous guidance of 750 – 800.  That would be nearly double the shipments they did this year.

CEO Peng Fang commented on the strong quarter, saying, “We continue to see strong demand from our existing customers as well as from new customers, and expect strong shipments for full year 2010 based on robust orders from a diversified customer base across multiple geographies. Going into 2010, we will focus on further extending our leadership in solar cell technology, product quality, and manufacturing cost.  We continue to expand our customer base for our core solar cell business.  Leveraging our strong solar cell platform, we plan to expand module facility in response to strong customer demand, and build up wafer capacity to improve quality and reduce cost.  Our goal, as always, is to provide our customers with highest quality products at the best price.”

Shares of JASO are up about 7% in premarket trading and it looks like they will hold support of their 200 day moving average.

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