Sunday, May 20, 2012

Trina Solar Doubles Earnings in Q4

Trina Solar (NYSE:TSL), a solar panel manufacturer, reported on Tuesday its fourth quarter earnings nearly tripled, beating analyst estimates by a wide margin.

Fourth quarter net income was $145.3 million, or $1.87 per American Depositary Share (“ADS”). The results included a net foreign currency exchange gain of $25.3 million. That compares to a net income of $48.8 million, or 74 cents per ADS, in the year-ago period. Meanwhile, revenues more than doubled to $641.8 million.

Analysts polled by Thomson Reuters expected the company to earn $1.09 a share on revenues of $525.31 million. CEO Jifan Gao said:

Our growth in 2010 demonstrates the successful execution of our strategy to expand sales across distribution segments and geographic end markets in North America and other exciting PV [photovoltaic] markets such as India, Australia and China.

During the fourth quarter, the company shipped about 351 MW of solar modules, exceeding the company's previous guidance of about 300 MW.

Overall gross margin was 31.4%, down from 32.6% in the fourth quarter of 2009. However, it exceeded the company's previous guidance of about 30%. Gross margin relating to the company's in-house wafer production to module production came in at 36.5%.

For the entire fiscal 2010, the company’s net income more than tripled from the previous year to $311.5 million, or $4.18 per ADS. Revenues more than doubled to $1.86 billion.

At year end, the company had $1.4 billion of current assets and $463.8 million of current liabilities.

For the full year of 2011, the company expects total photovoltaic module shipments between 1.75 GW to 1.80 GW, an increase of 65.6% to 70.3% from 2010.

The company also expects to raise its annualized production capacity to reach about 1.2 gigawatts and 1.9 gigawatts, respectively, in the second half of 2011.

Disclosure: None

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