TD Ameritrade (NASDAQ: AMTD): Q2 Earnings Preview 2011

TD Ameritrade Holding Corporation (NASDAQ: AMTD), Canada's second-largest lender, is scheduled to release fiscal second-quarter earnings before the opening bell on Tuesday, January 18, 2011. Analysts, on average, expect the company to report earnings of 28 cents per share on revenue of $702.23 million. In the year-ago period, the company reported earnings of 23 cents per share on revenue of $635.43 million.

TD AMERITRADE Holding Corporation, through its subsidiaries, provides securities brokerage services and technology-based financial services in the United States. AMTD operates two principal business units: a Private Client division and an Institutional Client division. 

In the preceding fiscal first quarter, the Omaha, Nebraska based company's net income was  $145.04 million or 25 cents per share, compared with a profit of $136.24 million or 23 cents per share in the year-ago period. Net revenues rose to $656.19 million from $624.62 million in the year-ago quarter. Analysts, on average, expected the company to report earnings of 24 cents per share on revenue of $646.45 million.

TD Ameritrade has continued to grow clients' assets while increasing net new assets, partly by differentiating itself through its discount online business model

TD Ameritrade's traditional revenue base comes from the transaction-based fees it charges to clients for brokerage and clearing services. This business model has been successful for online brokers because operating costs remain low in the online brokerage industry. TD Ameritrade also generates revenue from the cash in its clients' accounts, by lending out this money to other clients through margin accounts, and to third-party borrowers through affiliate banks.

The company's stock currently trades at a forward P/E (fye Sep 30, 2012) of 15.79 and PEG ratio (5 yr expected) of 1.68. In terms of stock performance, AMTD shares have gained nearly 9% over the past year.

Full Disclosure: None.

Forest Laboratories Inc. (NYSE: FRX): Q4 Earnings Preview 2011

Forest Laboratories Inc. (NYSE: FRX) is scheduled to release fiscal fourth-quarter earnings before the opening bell on Tuesday, April 19, 2011. Analysts, on average, expect the company to report earnings of $1.07 per share on revenue of $1.11 billion. In the year-ago period, the company reported earnings of 83 cents per share on revenue of $1.06 billion.

Forest Laboratories, Inc. develops, manufactures, and sells branded and generic forms of ethical drug products. The Company’s United States products are marketed directly, or detailed, to physicians by its salesforces. Its principal products include Lexapro to treat depression; Namenda to treat Alzheimer's disease; Bystolic, beta-blocker to treat hypertension; and Savella for the treatment of fibromyalgia.

In the preceding fiscal third-quarter, the New York-based company's net income was $320.71 million or $1.11 per share, compared with a profit of $210.23 million or $0.69 per share in the previous year. Excluding charges, adjusted earnings per share were $1.34, higher than $0.97 in the year-ago quarter. Revenue increased to $1.13 billion from $1.06 billion in the same quarter last year. Analysts, on average, expected the company to report earnings of 99 cents per share on revenue of $1.10 billion.

At its last earnings call in January, the company boosted its earnings outlook for the fiscal year ending March 31, 2011. The company said that it now expects adjusted earnings per share to be in the range of $4.20 to $4.30, up from the prior guidance range of $3.80 to $3.90 per share. Current fiscal earnings per share forecast exclude charges in the June quarter related to the settlement with United States Department of Justice and the upfront licensing payment to TransTech Pharma, excluding the upfront licensing payment to Gruenenthal in the fourth quarter, but including the impact of the accelerated share repurchase transaction.

Forest Laboratories is trying hard to come up with new drugs that can help replace lost revenue when its antidepressant drug Lexapro goes off patent in March 2012.  The drug generated $2.3 billion in revenue last year. Similarly, the company's Alzheimer's drug Namenda faces patent expiration in April 2015. According to IMS Health, Namenda had U.S. sales of $1.2 billion for the twelve months ended March 31, 2010. Once a drug loses its exclusivity, the field becomes open to generic drugmakers, who sell much more cheaply and typically take the majority of the market.

Last month, the company agreed to acquire specialty pharmaceutical company Clinical Data, Inc. for $1.2 billion to add to its portfolio of drugs to treat depression.  Forest expects the deal to leverage its existing presence in the antidepressant category by the addition of Clinical Data's Viibryd. Viibryd, or vilazodone HCL tablets, was developed by Clinical Data and approved by the FDA late January for the treatment of adults with MDD (major depressive disorder). Forest plans to launch Viibryd in the U.S. during the second half of 2011 and is expected to retain market exclusivity until March 2020.. In addition, the transaction brings to Forest, Stedivaze, a coronary vasodilator in Phase III development as a pharmacologic stress agent for radionuclide myocardial perfusion imaging or MPI. The deal is expected to be dilutive, net of synergies, to Forest's earnings per share for the next three fiscal years, with earnings per share dilution in the range of ($0.55) to ($0.65) in fiscal 2012. Forest said the transaction is likely to become accretive during fiscal 2014.  "We believe that we are uniquely positioned to bring Viibryd to market in light of our long and successful experience of clinical development and expertise in the antidepressant market," said Howard Solomon, Forest's chief executive. "This transaction is consistent with our strategy to acquire new products that will help offset the loss of revenues due to patent expiries."

The company's stock currently trades at a forward P/E (fye Mar 31, 2012) of 8.70 and PEG ratio (5 yr expected) of -3.08. In terms of stock performance, Forest Labs shares have lost nearly 3 percent over the past year.

Full Disclosure: None.

JA Solar (NASDAQ: JASO): Q3 Earnings Preview

JA Solar Holdings Co. Ltd. (NASDAQ: JASO) is scheduled to release its third-quarter 2010 financial results before the opening bell on Tuesday, November 9, 2010. Analysts, on average, expect the company to report earnings of 34 cents a share on revenue of $453.75 million. In the year ago period, the company reported earnings of 10 cents per share on revenue of $193.26 million.

JA Solar Holdings Co., Ltd., through its subsidiaries, engages in the design, manufacture, and marketing of high-performance solar cells. It offers monocrystalline and multicrystalline solar cells. The company sells its products to solar module manufacturers who assemble and integrate solar cells into modules and systems that convert sunlight into electricity for power generation. 

In the preceding fourth quarter, the Shanghai, China-based company's net income was $28.9 million, or 18 cents per American Depositary share, compared to a loss of $28.5 million, or 18 cents per share, in the prior-year quarter. On an adjusted basis, the company earned 27 cents per share in the latest quarter. Revenue surged to $351.2 million from $88.6 million. Analysts, on average, expected the company to report earnings of 24 cents per share on revenue of $303.81 million. Gross margins increased to 23.1 percent in the second quarter, from 22.9 percent reported in the first quarter of 2010. 

Recently, JA Solar Holdings Co., Ltd., (NASDAQ: JASO) raised its third quarter shipment guidance, citing strong customer orders and higher than anticipated production. The company expects its third quarter 2010 shipments to exceed 410 MW, above its previous shipment guidance of 375MW given on Aug. 10, 2010. The new guidance represents approximately 31.8 percent higher shipment compared with second quarter 2010 shipment of 311MW, and approximately 131.6 percent growth over third quarter 2009 shipment of 177MW. 

For fiscal 2010, JA Solar expects shipments to range over 1.35 GW.

Early in October, the company signed strategic supply agreements with BP Solar to provide a total of more than 185 MWs of mono-crystalline and multi-crystalline solar cells in 2

010 and through 2011. As per the terms of the deal, JA Solar will supply BP Solar with more than 100 MW in 2011, beginning in the first quarter. 

In September, the company signed a financial partnership Agreement with the Shanghai branch of China Development Bank, a government policy bank solely owned by China's central government. Under the terms of the agreement, China Development Bank will provide up to RMB 30 Billion of credit facilities and financing to JA Solar to support JA Solar's long-term growth and corporate development plans. 

Solar industry as a whole has benefited from continues strong demand due to growing awareness about global warming, skyrocketing oil prices, cheap financing and technological advances. Thanks to better cost advantages, Chinese solar module maker have grabbed more market share from their international competitors. Local solar companies have also benefited from China's well-developed supply chain, cheap electricity, supportive policies and even low environmental standards. The company's wafer processing cost in the second quarter was $0.31 per watt. The company has continued to work towards its goal of reducing the wafer conversion cost to as low as $0.25 per watt over the next six quarters. 

In terms of stock performance, JA Solar shares have gained nearly 52 percent over the past year.

Full Disclosure: None.