Trina Solar (TSL) has posted strong earnings results this morning,beating analyst estimates by a decent margin.
The company posted.74/share on revenues of $313 million. Analysts were looking for only.60/share on revenues of $283 million. The quarter was a bigimprovement over the year ago period when the company reported just.26/share and also represents a nice bump sequentially. Earningsincreased about 15% and revenues 25% over last quarter.
The quarter was highlighted by record shipments and increasingmargins. The company shipped 164MW in solar modules during the quarterwhich was at the high end of their range and represents a nearly 200%increase over the year ago quarter. For the full year 2009, thecompany nearly doubled shipments over 2008 to 399MW. Gross marginscame in at 32.6% which was well above the company’s previous guidanceof 25 – 27%.
CEO Jifan Gao commented: “Our increased brand recognition andongoing commitment to improving customer support in key areas resultedin the near doubling of our shipment volumes and a year-on-year revenueincrease in 2009. Although significant ASP declines were felt acrossthe industry, due to effective management and our strong executioncapability, we achieved consistently healthy and expanding margins bystreamlining our manufacturing processes, enhancing our supply chain,and implementing innovative technologies that improved ourmanufacturing efficiency.”
Looking ahead, the company expects the record shipments tocontinue. They are looking to ship between 180 – 190MW of solarmodules this quarter and close to 800MW for the year which be anotherdoubling over the previous year.
Shares of TSL are up about 4% in premarket trading, but technicallythe stock is still broken here, so I’m avoiding it on the long side. Istill feel like it needs to test the 200 day moving average around 18which is where I’d be a buyer.