Trina Solar Limited (NYSE:TSL) triggers improved revenues, raises Q3 projections
Trina Solar Limited (NYSE:TSL) reported its 2013 Q2 earnings results just before the market opened on Tuesday. The company reported earnings per share loss of $0.47 on $440.7 million revenue. In the same quarter a year ago, TSL had reported $0.90 ADS loss on revenue of $346.05 million. The company’s Q2 results compare to the average analyst estimates of an earnings per share loss of $0.57 and revenue of $374.89 million. One ADS is the equivalent of 50 ordinary shares.
Sequentially, there was a 70% improvement in revenues and module shipments had also risen by around 65%. The operating margins stayed negative. They improved from a -15.4% in the Q1 to a -5.4% in the Q2. From the Q2, the company expects module –shipments to be in the range of 650MW-680MW in comparison with the 647 MW shipments in the Q2. The company has raised its projections for the full year and said that shipments will be in the range of 2,100 MW-2.400 MW.
TSL had raised its shipments estimate for the Q2 just under 2 weeks ago to the range of 630 MW-660 MW. TSL has also increased its gross margins projections to the new range of 11%-12%. The Q2 gross margins were 11.6% and the expectation is that they will remain the same in the Q3 as well.
Too early to rejoice
With its gross margins and shipments on the rise, it seems like TSL might just turn out to be one of the vanquishers in the solar PV market. The actual profits have not been forecasted through 2014-end and this makes it a little difficult to feel elated about the performance of the solar market. The company’s shares rose by 15.345 in Tuesday’s trading and the stock closed at $7.82. The company has a market cap of $624.55 million.