JA Solar Earnings Overshadowed By $300M Offering (JASO)

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) came out with earnings this morning of $0.14 EPS vs. First Call estimates of $0.11 on a 234% rise in revenues to $160 million vs. estimates of $147.6 million.  The company is also reaffirming an equivalent revenue base of $1.03 to $1.14 Billion, which had previously been estimated at $990 million to $1.10 Billion.  First Call had estimates at $989.2 million. 

JA Solar also reaffirmed its Fiscal-2008 total production output of 340 MW minimum, and it sees a total annual production capacity at a minimum of 500 MW by the end 2008.

What is keeping a lid on the stock here is that the company is making offerings of $300 million in senior convertible notes due in 2013 and a borrowing and lending ADS agreements being borrowed by underwriters.  It is also entering into an ADS lending agreement, and an entry into capped call transactions.

In connection with hedging the capped call transactions, JA Solar expects to enter into various over the counter cash settled derivative transactions related to the ADS’s after the pricing of the notes and to purchase ADS’s in secondary market transactions shortly after the pricing of the notes.

Here is this week’s full solar player earnings preview roster (JSAO, CSIQ, LDK, YGE).

Jon C. Ogg
May 12, 2008