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What's in Store for JA Solar Holdings (JASO) Q2 Earnings?
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Solar company JA Solar Holdings Company Ltd. is set to release second-quarter results before the opening bell on Aug 17. Last quarter, the company delivered a positive 63.64% earnings surprise. Let’s see how things are shaping up prior to this announcement.
Factors at Play
JA Solar caters to a geographically diversified pan-continental customer base, spanning across Germany, Italy, the U.S., Spain, India, Korea, China and Japan. The company’s focus on widening its geographical customer base has resulted in incremental international sales. It is particularly focused on expanding its market share in the emerging markets, particularly in India and the Americas.
The company expects to ship 1.4–1.5 gigawatts (“GW”) of cells and modules in the second quarter. The company anticipates module shipment of about 100 MW to its downstream projects. It expects demand to remain strong in China in the first half of 2016.
However, besides anti-dumping policies in the U.S. and Europe, JA Solar has to face cut-throat competition from its domestic peers. The fierce competition between Chinese solar companies often leaves them with a feeble margin.
The Zacks Consensus Estimate for the company’s revenues is pegged at $689 million for the second quarter. This reflects an almost 57.7% increase on a year-over-year basis. Meanwhile, our estimate for the bottom line stands at 59 cents, reflecting 118.5% growth.
Our proven model does not conclusively show that JA Solar is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: JA Solar has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 59 cents.
Zacks Rank: JA Solar carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Releases
SolarCity Corp. , the largest U.S. rooftop solar installer, posted adjusted loss of $2.32 per share in the second quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.43. However, the figure was much wider than the year-ago loss of $1.61. The wider loss can be attributed to the company’s rising expenses.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2016 earnings of 87 cents a share, beating the Zacks Consensus Estimate of 58 cents by 50%. The reported number also surged 67.3% from the prior-year figure of 52 cents per share on the back of higher sales and gross profits.
SunPower Corp. (SPWR - Free Report) reported second-quarter 2016 adjusted loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents by 6.5%. In the year-ago quarter, the company had reported earnings of 9 cents.
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What's in Store for JA Solar Holdings (JASO) Q2 Earnings?
Solar company JA Solar Holdings Company Ltd. is set to release second-quarter results before the opening bell on Aug 17. Last quarter, the company delivered a positive 63.64% earnings surprise. Let’s see how things are shaping up prior to this announcement.
Factors at Play
JA Solar caters to a geographically diversified pan-continental customer base, spanning across Germany, Italy, the U.S., Spain, India, Korea, China and Japan. The company’s focus on widening its geographical customer base has resulted in incremental international sales. It is particularly focused on expanding its market share in the emerging markets, particularly in India and the Americas.
The company expects to ship 1.4–1.5 gigawatts (“GW”) of cells and modules in the second quarter. The company anticipates module shipment of about 100 MW to its downstream projects. It expects demand to remain strong in China in the first half of 2016.
However, besides anti-dumping policies in the U.S. and Europe, JA Solar has to face cut-throat competition from its domestic peers. The fierce competition between Chinese solar companies often leaves them with a feeble margin.
The Zacks Consensus Estimate for the company’s revenues is pegged at $689 million for the second quarter. This reflects an almost 57.7% increase on a year-over-year basis. Meanwhile, our estimate for the bottom line stands at 59 cents, reflecting 118.5% growth.
JA SOLAR HOLDGS Price and EPS Surprise
JA SOLAR HOLDGS Price and EPS Surprise | JA SOLAR HOLDGS Quote
Earnings Whispers
Our proven model does not conclusively show that JA Solar is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. But that is not the case here, as you will see below.
Zacks ESP: JA Solar has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 59 cents.
Zacks Rank: JA Solar carries a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
Note that we caution against stocks with a Zacks Rank #4 or #5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Peer Releases
SolarCity Corp. , the largest U.S. rooftop solar installer, posted adjusted loss of $2.32 per share in the second quarter of 2016, narrower than the Zacks Consensus Estimate of a loss of $2.43. However, the figure was much wider than the year-ago loss of $1.61. The wider loss can be attributed to the company’s rising expenses.
First Solar Inc. (FSLR - Free Report) reported second-quarter 2016 earnings of 87 cents a share, beating the Zacks Consensus Estimate of 58 cents by 50%. The reported number also surged 67.3% from the prior-year figure of 52 cents per share on the back of higher sales and gross profits.
SunPower Corp. (SPWR - Free Report) reported second-quarter 2016 adjusted loss of 33 cents per share, wider than the Zacks Consensus Estimate of a loss of 31 cents by 6.5%. In the year-ago quarter, the company had reported earnings of 9 cents.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>