Trina Solar beats by $0.18, misses on revs
Reports Q3 (Sep) earnings of $0.34 per share, excluding unrealized loss or gain in foreign exchange, $0.18 better than the Capital IQ Consensus Estimate of $0.16; revenues rose 12.5% year/year to $616.8 mln vs the $650.26 mln consensus. Earnings per fully diluted ADS was $0.14.
- Solar module shipments totaled 1,063.8 MW during the third quarter of 2014, compared to 943.3 MW in the second quarter of 2014, an increase of 12.8%
- Gross profit was $102.8 million, an increase of 28.1% from the second quarter of 2014
- Gross margin was 16.7%, compared to 15.4% in the second quarter of 2014
- The Company changes its 2014 guidance of total PV module shipments to between 3.61 GW and 3.66 GW, of which 340 MW to 360 MW of PV modules will be shipped to the Company's own downstream projects from the original guidance of total 3.6 GW to 3.8 GW including 400 MW to 500 MW of shipment to its own downstream projects. Revenues will not be recognized for the modules shipped to the Company's own projects as required by U.S. GAAP.
- The company expects to complete between 330 MW and 360 MW of downstream solar projects by the end of 2014, as compared to the original guidance of 400 MW to 500 MW projects be completed by the end of 2014.
- This change is mainly due to the cancellation of a 130 MW solar farm project in Inner Mongolia after the Company conducted a thorough analysis on the project's return. The Chinese government's policy change will impact the development of the Company's pipeline to a certain extent.