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JA Solar (JASO) Reports Q1 Earnings, Revenues Increase Y/Y
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JA Solar Holdings Co., Ltd. posted first-quarter 2017 adjusted earnings of 3 cents per diluted American Depositary Share (ADS). The Zacks Consensus Estimate was pegged at a loss of 2 cents.
Earnings declined 91.2% from 34 cents in the year-ago period.
Total Revenue
JA Solar’s revenues in the reported quarter were $537.7 million, comfortably beating the consensus mark of $493 million by 9.1%. The reported figure was also up 6.4% compared with the year-ago level.
Q1 Shipments
Total shipments in the first quarter of 2017 were 1,392.7 megawatts (“MW”), most of which were modules and cells shipped to external customers. So, external shipments were also 1,375.3 MW, up 32.5% year over year.
The year-over-year improvement in external shipments was attributable to a 44.1% upside in module shipment, partially offset by 57.8% decline witnessed in cells and cell tolling.
The increase in shipments came on the back of strong demand from Asia-Pacific (excluding China), which constituted 44.2% of the quarter’s total shipment. Shipments to North America rose to 8.1% of the total from 4.5% in the year-ago quarter. China markets, however, witnessed a considerable drop, having contributed 39.7% to total shipments compared with 59.6% a year ago. Europe also witnessed a slowdown in shipments, which constituted 5.5% of the total, reflecting a slight drop from 5.6% a year ago. South America too saw a decline in shipments, which constituting 0.1% of the total in the reported quarter compared with 2.84% in the year-ago quarter.
Highlights of the Release
Gross profits were $63.4 million, down 24.1% year over year. Gross margin also contracted 490 basis points year over year to 11.7%.
Total operating expenses of $53.4 million represented 9.9% of revenues compared to the year-ago figure constituting 10.1% of revenues. Operating profit was $10 million, down 69.2% from the year-ago quarter.
Interest expenses totaled $11.1 million, up from $10.4 million a year ago.
JA Solar Holdings, Co., Ltd. Price, Consensus and EPS Surprise
At the end of first-quarter, JA Solar had a cash balance of $332.1 million compared with $370.1 million at 2016-end. As of Mar 31, 2017, total long-term borrowings were $298.9 million compared with $464.7 million as of Dec 31, 2016.
Guidance
JA Solar expects to ship 1,550–1,650 MW of cells and modules in the second quarter of 2017, with essentially all being external shipments.
For 2017, the company reiterates its expectation to ship 6–6.5 GW of cells and modules, which includes 200–250 MW of module shipments to the company’s downstream projects.
First Solar Inc. (FSLR - Free Report) reported first-quarter 2017 earnings of 25 cents a share. The Zacks Consensus Estimate was pegged at a loss of 13 cents. The reported number declined 84.9% from the prior-year figure of $1.66.
SunPower Corp. (SPWR - Free Report) reported first-quarter 2017 loss of 42 cents per share, narrower than the Zacks Consensus Estimate of loss of 66 cents. In the year-ago period, the company had posted loss of 42 cents.
An Upcoming Peer Release
Canadian Solar, Inc. (CSIQ - Free Report) is scheduled to release first-quarter 2017 results on Jun 6.
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JA Solar (JASO) Reports Q1 Earnings, Revenues Increase Y/Y
JA Solar Holdings Co., Ltd. posted first-quarter 2017 adjusted earnings of 3 cents per diluted American Depositary Share (ADS). The Zacks Consensus Estimate was pegged at a loss of 2 cents.
Earnings declined 91.2% from 34 cents in the year-ago period.
Total Revenue
JA Solar’s revenues in the reported quarter were $537.7 million, comfortably beating the consensus mark of $493 million by 9.1%. The reported figure was also up 6.4% compared with the year-ago level.
Q1 Shipments
Total shipments in the first quarter of 2017 were 1,392.7 megawatts (“MW”), most of which were modules and cells shipped to external customers. So, external shipments were also 1,375.3 MW, up 32.5% year over year.
The year-over-year improvement in external shipments was attributable to a 44.1% upside in module shipment, partially offset by 57.8% decline witnessed in cells and cell tolling.
The increase in shipments came on the back of strong demand from Asia-Pacific (excluding China), which constituted 44.2% of the quarter’s total shipment. Shipments to North America rose to 8.1% of the total from 4.5% in the year-ago quarter. China markets, however, witnessed a considerable drop, having contributed 39.7% to total shipments compared with 59.6% a year ago. Europe also witnessed a slowdown in shipments, which constituted 5.5% of the total, reflecting a slight drop from 5.6% a year ago. South America too saw a decline in shipments, which constituting 0.1% of the total in the reported quarter compared with 2.84% in the year-ago quarter.
Highlights of the Release
Gross profits were $63.4 million, down 24.1% year over year. Gross margin also contracted 490 basis points year over year to 11.7%.
Total operating expenses of $53.4 million represented 9.9% of revenues compared to the year-ago figure constituting 10.1% of revenues. Operating profit was $10 million, down 69.2% from the year-ago quarter.
Interest expenses totaled $11.1 million, up from $10.4 million a year ago.
JA Solar Holdings, Co., Ltd. Price, Consensus and EPS Surprise
JA Solar Holdings, Co., Ltd. Price, Consensus and EPS Surprise | JA Solar Holdings, Co., Ltd. Quote
Financial Condition
At the end of first-quarter, JA Solar had a cash balance of $332.1 million compared with $370.1 million at 2016-end. As of Mar 31, 2017, total long-term borrowings were $298.9 million compared with $464.7 million as of Dec 31, 2016.
Guidance
JA Solar expects to ship 1,550–1,650 MW of cells and modules in the second quarter of 2017, with essentially all being external shipments.
For 2017, the company reiterates its expectation to ship 6–6.5 GW of cells and modules, which includes 200–250 MW of module shipments to the company’s downstream projects.
Zacks Rank
JA Solar currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
First Solar Inc. (FSLR - Free Report) reported first-quarter 2017 earnings of 25 cents a share. The Zacks Consensus Estimate was pegged at a loss of 13 cents. The reported number declined 84.9% from the prior-year figure of $1.66.
SunPower Corp. (SPWR - Free Report) reported first-quarter 2017 loss of 42 cents per share, narrower than the Zacks Consensus Estimate of loss of 66 cents. In the year-ago period, the company had posted loss of 42 cents.
An Upcoming Peer Release
Canadian Solar, Inc. (CSIQ - Free Report) is scheduled to release first-quarter 2017 results on Jun 6.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>