The company now expects to ship between 540MW and 570MW worth of solar modules in the first quarter, down from its previous guidance of between 670MW and 700MW. Trina Solar says the lower forecast is due to "a temporary decrease in shipments to the EU" following a deal for a new minimum price for the region's Chinese solar imports. The company expects shipments to increase when a deal is put in place.
Trina Solar also increased its Q1 gross margin forcast to between 18% and 20%, up from a mid-teens forecast. The increase is due to higher ASPs and a high-teens GM for a recent 50MW Chinese solar project.
Despite the lower forecast for the first quarter, Trina Solar still expects to ship between 3.6GW and 3.8GW worth of solar modules for the year.
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TheStreet Ratings team rates TRINA SOLAR LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TRINA SOLAR LTD (TSL) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."