Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Shares of JA Solar Holdings Co., Ltd. Popped Today

By Travis Hoium - Mar 17, 2014 at 2:35PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful or just another movement?

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of solar manufacturer JA Solar (NASDAQ: JASO) jumped as much as 21% today after reporting earnings. They settled at a 5% gain in mid-day trading.

So what: In the fourth quarter, JA Solar shipped 665.5 MW of solar products, up 33% from the third quarter and beating its own guidance of 550.0 MW. Revenue was up 23% over the same time frame to $357.3 million, gross margin was 15.5%, and net income was $23.0 million, or $0.32 per share.  

Now what: China and Japan continued to be a vast majority of sales, which should continue in 2014 because these are two growth markets for solar right now. Management also said it will increase cell and module manufacturing capacity to 2.8 GW per year, which should increase sales and margins in the back half of the year. The profit may not look big but it's significant, especially when you consider the potential to improve the balance sheet in the future. This is one of the better stocks in Chinese solar and investors should expect continued improvement in 2014.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
633%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/08/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.