Boston, MA 03/17/2014 (wallstreetpr) – Shares of JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) trending upward in the current session. And it is all for obvious reasons, that the company managed to show steady recovery in its operations after many quarters of lackluster performance. While it is right to be excited by the latest results, the real deal lies in what the company has in store for the future. In other words, investors should be concerned about the road ahead and the promise it holds in terms of earnings and stock price growth.
In the current session, shares are already touching new one-year high, thanks to the largely solid fourth quarter results. But can we expect the solar company to continue posting such encouraging results in the quarters or even years ahead? The best way to answer this question is taking a look at the results and giving an ear to what the management had to say about the business.
Fourth quarter results
The company announced that it earned net income of $23 million, reflecting 32 cents per share of the America depository share (ADS). That contrasted with loss of $102.4 million or $2.65 per ADS in the corresponding quarter of 2012. Revenue in the quarter increased 33 percent to $357.3 million.
By reporting a profit in the latest quarter – a strong one for that matter – the company managed to break a 10-quarter streak of losses that had come to characterize its business.
Outlook
JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) hopes that it will be able to have more shipment in the current quarter and fiscal year. The company is forecasting cell and module shipments between 580 and 610 megawatts in the first quarter. For the full-year, it expects to shipments of between 2.7 and 2.9 gigawatts. That contracts with 2.1 gigawatts shipment in 2013.
Existing opportunities
The company is upbeat about the market conditions in China and Japan. In China, a robust solar market is expected as the company increases its solar installation projects. And in Japan, the solar subsidies are expected to spur growth and JASO stated it is ready to benefit from the opportunities.
China targets to install 14.5 gigawatts of solar capacity in 2014 and China being one of the company’s cornerstone markets, CEO Baofang Jin said they will continue to perform well. As for Japan, JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) said it is on its lists and key growth driver this year, as is U.K where it is making steady inroads.
