JA Solar, Another Big Solar Miss (JASO, SOLR, SPWRA)

JA Solar Holdings Co. Ltd. (NASDAQ:JASO) reported first quarter 2009 results this morning, and the news was not so hot. The company posted an EPS loss of -$0.18 on revenue of $33.9 million. In the year-ago quarter, JA Solar posted revenue of $164.2 million and a EPS of $0.99. Estimates averaged an EPS loss of -$0.05 on revenue of $107.89. JA Solar’s results stunk.

Just a week ago GT Solar International Inc. (NASDAQ:SOLR) reported missing estimated EPS and revenue, following lousy reports from SunPower Corporation (NASDAQ:SPWRA) and others solar players. For the past 12 months, JA Solar shares have fallen more than 80%.

The company’s CEO blamed the poor showing on “worse-than-normal seasonality, a weak macro-economic environment and the continuing impact of the credit crisis.” Then he goes on to say that the company is preparing for what it hopes will be a recovery in the market based on “encouraging signs of market improvement in key end markets.” So it is hoping for better results based on hopeful signs. That’s excellent management.

JA Solar also revised its guidance down from annual revenue of $830-$952 million, but it did not provide a new number. Analysts’ estimates for the year were $733.84 million, but that is sure to fall off the edge of the table following today’s report.

JA Solar’s shares are down more than 12% in pre-market trading, to $2.83. The company’s 52-week trading range is $1.55-$26.99. A new low is not impossible given the weakness the company reported today.

Paul Ausick
May 19, 2009