JA Solar Q4 Earnings Seen Doubling; Rival JinkoSolar Rated Hold

By | March 14, 2016

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JA Solar ( JASO ) is expected Tuesday to report a second consecutive quarter of triple-digit earnings growth, and rival Chinese solar panel-maker JinkoSolar Holding ( JKS ) got a hold rating Monday, with an analyst questioning its plans for a spinoff. Shares of both companies were up a fraction in late-afternoon trading on the stock market today . JA Solar stock was trading above 9, JinkoSolar stock was near 24. Last week, a Roth Capital analyst reiterated a buy rating on JA Solar stock ahead of its Q4 earnings, due out before the open Tuesday. For Q4, two analysts polled by Thomson Reuters model $683.3 million in sales for JA Solar and 68 cents in earnings per American depositary share, up 18.5% and 143%, respectively, vs. the year earlier quarter. Last week, JA Solar issued preliminary Q4 guidance of RMB 4.4 billion to RMB 4.6 billion (about $680 million to $710 million) in sales. The company upped its shipment outlook to 1.32 gigawatts to 1.35 GW vs. earlier views for 1.1 GW to 1.2 GW. JA Solar’s new guidance has shipments growing 40% year over year. JA Solar expects that it ended the year with 3.92 GW to 3.95 GW in shipments, up 27% at the midpoint. The consensus models $2.1 billion in 2015 sales and $1.77 in earnings per ADS, up 16% and 101%, vs. 2014 metrics. Analysts are sunnier on JinkoSolar. At least two analysts reiterated positive ratings on JinkoSolar stock — buy and outperform — this month after the company’s Q4 earnings report on March 1. But S&P Global Market Intelligence analyst Angelo Zino reiterated a hold rating Monday on JinkoSolar stock. He expects earnings per ADS of $4.82 and $5.50 in 2016 and 2017, compared with $5.01 in 2015. Zino said he remains “wary” of JinkoSolar’s plan to spin off its downstream solar photovoltaic project business this year. Scalper1 News

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