JA Solar (JASO) Reports Wider-than-Expected Q2 Loss as Euro Policies Weigh
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Shares of JA Solar (Nasdaq: JASO) are trading in the red Thursday morning following a huge earnings miss and cut shipment outlook.
Revenue in the quarter grew 12.1 percent from $368.3 million last year to $413 million.
JA Solar's loss per ADS widened from 19 cents in the second quarter of 2010 to 22 cents in the latest quarter.
The Street was looking for revenue of $418.6 million and a loss of just 2 cents per share.
Shipments in the quarter grew 28.9 percent to 401 megawatts. The number is an 11.1 percent decline from shipments of 451 MW in the first quarter of 2011.
"Our second quarter results reflect the market disruption that resulted from generally lower than anticipated installation levels in Germany and recent policy changes in Italy," CEO Peng Fang commented. "In recent weeks, we have seen signs of market recovery with both orders and volume shipments increasing across our diverse customer base...With this healthy demand from our customers, we expect shipment volumes to increase in the second half of this year compared to the first half. We are also encouraged by a reduction in key raw material costs, as we continue to make progress on achieving our cost reduction targets."
Looking ahead, JA Solar sees third-quarter shipments of 450 to 470 MW, representing growth of 12.2 to 17.2 percent. However, JA Solar cut it's fiscal 2011 shipment outlook from about 2.2 gigawatts to 1.8 gigawatts.
JA Solar shares have tumbled more than 11 percent following the quarterly report. The stock last traded at $3.41.
Revenue in the quarter grew 12.1 percent from $368.3 million last year to $413 million.
JA Solar's loss per ADS widened from 19 cents in the second quarter of 2010 to 22 cents in the latest quarter.
The Street was looking for revenue of $418.6 million and a loss of just 2 cents per share.
Shipments in the quarter grew 28.9 percent to 401 megawatts. The number is an 11.1 percent decline from shipments of 451 MW in the first quarter of 2011.
"Our second quarter results reflect the market disruption that resulted from generally lower than anticipated installation levels in Germany and recent policy changes in Italy," CEO Peng Fang commented. "In recent weeks, we have seen signs of market recovery with both orders and volume shipments increasing across our diverse customer base...With this healthy demand from our customers, we expect shipment volumes to increase in the second half of this year compared to the first half. We are also encouraged by a reduction in key raw material costs, as we continue to make progress on achieving our cost reduction targets."
Looking ahead, JA Solar sees third-quarter shipments of 450 to 470 MW, representing growth of 12.2 to 17.2 percent. However, JA Solar cut it's fiscal 2011 shipment outlook from about 2.2 gigawatts to 1.8 gigawatts.
JA Solar shares have tumbled more than 11 percent following the quarterly report. The stock last traded at $3.41.
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