Prior to its third quarter earnings release, which is scheduled for November 9, 2010, JA Solar Holdings Co. Ltd. (JASO) altered its shipments guidance based on strong customer orders and expectations of increased production and shipments during the third quarter.
JA Solar now estimates third quarter 2010 shipments to exceed 410 MW, growing 131.6% from 177MW shipped in the year-ago quarter and also surpassing its previous guidance of 375 MW for the third quarter of 2010.
JA Solar’s total shipments in the second quarter of 2010 were 311 MW compared with first quarter shipments of 272 MW, representing a sequential growth of 14%, primarily due to improvements in line throughput and yield. The company’s revised third quarter guidance represents a 31.8% growth from the second quarter of 2010.
The company indicated that the updated guidance for the third quarter is an estimate and is subject to change based on further review by management.
For fiscal 2010, JA Solar expects shipments to range over 1.35 GW.
JA Solar’s adjusted earnings per American Depositary Share (EPADS) of $0.18 in second quarter 2010 fell short of the Zacks Consensus Estimate of $0.23, while it comfortably rose above the year-ago adjusted loss per ADS of $0.18.
The Zacks Consensus EPADS estimate for third quarter 2010 is 31 cents. For fiscal 2010 and 2011, the Zacks Consensus Estimates are $1.08 and $1.15, respectively.
Based in China, JA Solar is one of the world’s largest manufacturers of high-performance solar cells and solar power products. The company is one of the most cost-efficient solar producers with a geographically diverse customer base. Moreover, it has in place silicon wafer supply agreements to feed its entire production.
JA Solar’s principal customers are solar module manufacturers, who assemble and integrate its products into their modules and systems. The company sells primarily to customers in China, Europe and the U.S. The company follows a strategy of long-term commitments to its vendors and suppliers.
JA Solar currently has a short-term Zacks #2 Rank (Buy), supporting our long term Outperform rating on the stock.
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