JA Solar (JASO) will report ahead of the bell tomorrow morning and Piper Jaffray has a preview (courtesy of Street Insider) of earnings which could provide some insight into how well the other China solar companies will do this quarter.
Jesse Pichel of Piper Jaffray recommends traders own JASO shares ahead of earnings. It’s a little late now! They highlight the positives..
– JA Solar has low Euro exposure compared with its Chinese peers. With the Euro being weak, lower Euro exposure translates to lower forex loss.
– JA Solar is expected to benefit from demand shifting to China after the German FIT cut. It could also become an acquisition target as high cost module makers try to stay competitive.
– There could be upside to Piper’s Q4 revenue estimate of $223M and GAAP EPS estimate of $0.10. The Street is currently looking for Q4 EPS of $0.11 on sales of $213.51 million.
– will likely maintain its margin improvement over 2Q09 and potentially beat Piper’s 4Q09 GM estimate of 16.3%.The firm said it will be looking for any indication from JA whether order pattern changed due to the German feed-in tariff cut uncertainty and a weak Euro.
PVinsights solar PV price information, http://pvinsights.com/ , indicated that solar panel price remained stable or slightly drop. This price trend did help solar panle a better earning result in 4Q09.