What To Expect From JA Solar (JASO) This Earnings Season?
Zacks Investment Research | Nov 13, 2017 07:51AM ET
Solar company, JA Solar Holdings Company Ltd. (NASDAQ:JASO) is set to release third-quarter results before the opening bell on Nov 15.
Last quarter, the company delivered better-than-expected earnings. Moreover, it was able to beat the Zacks Consensus Estimate in the trailing four quarters, with an average positive surprise of 716.67%.
Let’s see how things are shaping up prior to this announcement.
Factors at Play
On the second-quarter earnings call, JA Solar stated that it anticipates total sales at the module shipments to be in the range of 1,600 to 1,700 megawatts for the third quarter, most of which will be external sales. Additionally, shipments are expected to be down sequentially, following a normal seasonal pattern.
Per JA Solar, gross margin is also expected to decline due to the rising material costs in the third quarter. However, the company projects strong demand from China in the same period, on the back of its strong average selling price.
Apart from the anti-dumping policies in the United States and Europe, JA Solar also has to face cut-throat competition from domestic peers. The fierce competition between Chinese solar companies often hurts the business margins. In addition, high product costs continue to impact the stock and are expected to hamper the yet-to-be-reported quarter’s results.
Furthermore, the Zacks Consensus Estimate for the company’s revenues is pegged at $610 million for the quarter, which reflects a decline of 2.3% on a year-over-year basis. Meanwhile, the same for the bottom line reflects a growth of 20%.
JA Solar Holdings, Co., Ltd. Price and EPS Surprise
Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.