Wednesday, February 6, 2013

Will These Numbers from JA Solar Holdings Be Good Enough for You?

JA Solar Holdings (Nasdaq: JASO  ) is expected to report Q4 earnings around Feb. 11. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict JA Solar Holdings's revenues will shrink -24.8% and EPS will remain in the red.

The average estimate for revenue is $232.4 million. On the bottom line, the average EPS estimate is -$1.16.

Revenue details
Last quarter, JA Solar Holdings notched revenue of $260.9 million. GAAP reported sales were 33% lower than the prior-year quarter's $387.7 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at -$1.68. GAAP EPS were -$1.52 for Q3 versus -$1.79 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was -5.9%, 160 basis points worse than the prior-year quarter. Operating margin was -23.2%, 1,200 basis points worse than the prior-year quarter. Net margin was -22.6%, 740 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.02 billion. The average EPS estimate is -$5.54.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,555 members out of 1,653 rating the stock outperform, and 98 members rating it underperform. Among 220 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give JA Solar Holdings a green thumbs-up, and 26 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on JA Solar Holdings is underperform, with an average price target of $5.86.

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