JA Solar Holdings (JASO) is scheduled to report its Q2 2012 results on Aug. 29, 2012, before market opens. The Street expects EPS and revenue of ($0.14) loss and $290.88 million, respectively.
In this article I will recap the company's historical results, its latest EPS estimates vs. surprises, the latest news from JASO, and the news from its closest competitors.
Click to enlarge images.
Recent EPS: Actual Vs. Estimates
The company has failed to meet analysts' estimates in the last four quarters. In the last quarter it reported a $0.20 loss per share, failing to meet analyst estimates of a $0.15 loss.
The consensus EPS estimate is a $0.14 loss based on 11 analysts' estimates, up from a $0.22 loss a year ago. Revenue estimates are $290.88 million, down from $412.95 million a year ago. The median target price by analysts for the stock is $1.10.
Average Recommendation: Underweight
- On Aug. 7, 2012, JA Solar Holdings announced that it has signed a supply agreement with A Shade Greener (ASG), a U.K.-based PV installer and installer of free solar panels to the residential market in the United Kingdom.
- On July 30, 2012, JA Solar Holdings announced that it entered into a share transfer agreement on July 23, 2012, with M.SETEK Co. (M.SETEK), a polysilicon and solar wafer manufacturer in Japan controlled by AU Optronics.
- On June 14, 2012, JA Solar Holdings announced that board of directors has approved a share repurchase program, effective immediately, that authorizes JA Solar to repurchase up to a $100 million worth of its issued and outstanding American depositary shares prior to Sept. 30, 2012.
Canadian Solar (CSIQ), First Solar (FSLR), LDK Solar (LDK), ReneSola (SOL), and Suntech Power Holdings (STP) are considered major competitors for JA Solar Holdings, and the chart below compares the stock price changes as a percentage for the selected companies for the last one-year period.
Competitors' Latest Developments
- On Aug. 22, 2012, Cohen Milstein Sellers & Toll announced that it is conducting an investigation to determine whether Suntech Power Holdings and certain of its officers and directors made false and misleading statements and/or omissions in violation of sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
- On Aug. 15, 2012, Suntech Power Holdings announced that that Dr. Zhengrong Shi will serve as executive chairman of the board and assume the position of chief strategy officer of the company.
- On Aug. 14, 2012, Suntech Power Holdings announced that it has obtained court orders to freeze the worldwide assets of GSF Capital and Javier Romero and to have an independent, court-appointed manager oversee their assets.
- On Aug. 11, 2012, Faruqi & Faruqi, a national securities law firm, announced that it is investigating potential securities fraud at Suntech Power Holdings. The investigation focuses on whether the company and its executives violated federal securities laws by failing to disclose that: (1) Suntech had not been pledged 560 million euros in German government bonds from GSF Capital Pte Ltd. (GSF), in connection with its May 2010 financing arrangement with the China Development Bank; (2) the company lacked internal and financial controls; and (3) as a result, the company's financial statements were materially false and misleading at all relevant times.
- On Aug. 2, 2012, First Solar reported in its Form 8-K that effective July 30, 2012, Ahearn resigned as an employee of the company and the employment agreement was terminated.
- On Aug. 2, 2012, ReneSola Ltd. announced that it has sold 8 MW of high-quality, high-performance monocrystalline solar modules to True Value Solar. Under the terms of the agreement, ReneSola will ship a total of 8 MW of its high-quality, high-performance monocrystalline solar modules directly to True Value Solar's distribution sites in Australia by the end of this month.
- On Aug. 1, 2012, First Solar announced that it is increasing fiscal 2012 guidance and expects net sales of $3.6-$3.9 billion, compared to prior guidance of $3.5-$3.8 billion.
- On July 23, 2012, ReneSola Ltd. announced that it has sold 5.95 MW of its high-efficiency Virtus modules to Solargain PV Pty Ltd, one of the top solar distributors in Australia and one of Australia's integrated solar energy and solar hot water suppliers.
- On June 26, 2012, LDK Solar announced that based on the current business conditions for the second quarter of 2012, it estimates revenue to be in the range of $220-$270 million.
- On June 25, 2012, Canadian Solar announced a supply agreement. Under the agreement, Canadian Solar will supply up to 40 MW of high solar modules to Real Goods Solar to power a range of commercial and residential installations in the United States.
- On June 20, 2012, enXco, an EDF Energies Nouvelles Company, announced that it has signed a solar module supply agreement with First Solar. First Solar will deliver 61 megawatts peak (MWp) of thin film modules starting in September 2012 for enXco's Catalina Solar Project located in Kern County, Calif.
- On June 11, 2012, First Solar and Intermolecular announced a collaboration and licensing agreement aimed at accelerating the efficiency roadmap for First Solar's cadmium-telluride photovoltaic technology.
- On June 7, 2012, Canadian Solar announced that its subsidiary, Canadian Solar Solutions, and Horizon Energy Solutions have entered into an engineering, procurement and construction agreement to construct commercial rooftop solar electricity generating facilities.
- On June 4, 2012, LDK Solar announced that the company has signed three multiyear engineering, procurement, and construction agreements. All three projects are located in the Gansu province of the People's Republic of China.
The stock has a market capitalization of $218.42 million and is currently trading at $1.07 with a 52-week range of $0.89 to $3.79. The stock's year-to-date performance has been -19.40%. It is currently trading above the 20-day and 50-day SMA, but below the 200-day SMA.
Data sourced from Yahoo Finance, Google Finance, MarketWatch, Finviz, and Reuters.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.