This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Trina Solar Forecasts Brighter Future

(Trina Solar earnings story updated with additional commentary and closing stock prices.)

CHANGZHOU, China ( TheStreet) -- Trina Solar Limited (TSL - Get Report) beat quarterly earnings expectations and upped its forecast for solar shipment volume.

Trina Solar said early Tuesday it more than doubled quarterly profits and revenue in its second quarter on record shipment volume, and expects strengthening demand for photovoltaic products to extend into 2011.

"Trina had a good quarter," Wedbush Securities analyst Christine Hersey told TheStreet, commenting on the firm's increased shipment guidance for this year and capacity expansion outlook for next.

Hersey expects a 15% decline in prices next year, which could pressure the margins of some sector players. But she added that Trina will sell more units as well as reduce its costs.

" Trina is the low-cost leader" among sector peers with "the highest gross margin of all silicon module makers," Hersey said. "It has more room to withstand pricing pressure."

American depositary receipts of Trina Solar jumped 5.8% in trading Tuesday, easily outpacing the sector which closed the day mostly in negative territory. Suntech Power Holdings (STP) and JinkoSolar Holding (JKS - Get Report), both also based in China, led the group lower, closing down 5.4% and 5.3%, respectively. Yingli Green Energy Holding (YGE - Get Report), another China-based solar company, closed off by 4.4%. First Solar (FSLR - Get Report), based in Tempe, Ariz., edged 0.9% lower.

In the second quarter, Trina Solar booked profits of $38.7 million, or 52 cents per American depositary share, compared with year-earlier earnings of $18.9 million, or 71 cents per ADS. Results topped expectations for earnings of 49 cents per ADS.

Net income for the Chinese manufacturer of solar photovoltaic products was negatively impacted by $29.2 million, or 37 cents per ADS, in foreign currency exchange losses. Currency-related losses were primarily due to the depreciation of the Euro against the U.S. dollar in the second quarter.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
WFR $0.00 0.00%
STP $0.53 0.00%
FSLR $58.68 0.24%
JKS $21.80 0.88%
TSL $10.40 -1.33%

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs