China’s J.A. Solar Holdings $JASO shares soared 6% after they reported better than expected earnings for the second-quarter 2017 and raised guidance on shipments. Sales tumbled in South America however.
Solar Holdings $JASO shares soared 6% after they reported better than expected earnings for the second-quarter 2017 and raised guidance on shipments. Sales tumbled in South America however.
Earnings: Gross profits $113.7 million, up 20.3% year over year. EPS of 42 cents per diluted American Depository Share (ADS). Revenues rose 42% Y/Y to $878 million, up 41.9% compared with the year-ago level.
Reaction JA Solar NASDAQ $JASO Pre Market 6.55 +0.36 +6.40%
The company said the July 13 fire at the Yangzhou cell production facility caused a loss in cell production capacity of 500 MW/year, which it expects to restore by Q1 2018.
The improvement year over year in external shipments stemmed from 89.3% upside in module shipment and 75.8% growth witnessed in cells shipments.
Gross margin contracted 240 basis points year over year to 12.9%
Total operating expenses of $76.1 million represented 8.7% of revenues compared with year-ago figure 10.7% of revenues. Operating profit was $37.6 million, up 32.9% from the year-ago quarter.
Interest expenses totaled $12.2 million, up from $10.4 million a year ago.
Total shipments were 2,389 MW vs. guidance of 1,550-1,650 MW; external shipments rose 88% Y/Y and 68% Q/Q.
- Asia-Pacific (excluding China) 24.9% of quarter’s total shipment
- Europe 5.1% of the total from 3.7% in the year-ago quarter.
- South America 0.4% of the totaldown from 9.9% in the year-ago quarter.
- China 59.2% of the total down from 63.9% in the year-ago quarter.
- North America 8.1% of the total from 9.3% in the year-ago quarter.
$JASO raised its full-year shipment outlook, now seeing total cell and module shipments of 6.5-7.0 GW, up from 6.0-6.5 GW prior, including 100-150 MW of module shipments to the company’s downstream projects, down from 200-250 MW in earlier guidance.
Source: J.A. Solar, Yahoo
Live From The Pit