Trina Solar (TSL) Beats On EPS, Says "Market Confidence Returning To PV Sector"

Trina Solar (TSL) is trading a bit higher after the bell today after the company beat EPS estimates on revenues that were about inline.  Taking out one time write offs and gains, the company reported an EPS of .42/share which beat analyst estimates of .32/share but represents a significant hair cut from the year ago quarter when it posted 1.01/share.  Still, it’s an improvement over last quarter’s .33/share.  Revenues came in at $150 million which represents a 27% decline over the year ago quarter. 

Said the CEO, “We see market confidence returning to the PV sector due the strong government commitment to support clean energy technologies and an improvement in financing conditions. With greater visibility and a pickup in demand in the market we have therefore committed to capacity expansion by the end of the year in order to further leverage the benefits of our fully integrated business model.”

Some highlights..

– sequential revenue increase due to improving demand in major European markets, improving access to financing and increasing number of government incentive programs in Europe, Asia and US

– gross margins improved to 27.4% due to lower silicon prices and greater efficiencies

– achieved positive net operating cash flow and positive net cash flow in the quarter

– non-silicon manufacturing cost for its multicrystalline modules decreased approximately $0.06 to $0.73 per watt.

– has achieved monocrystalline cell efficiencies of up to 18.6% by leveraging advanced passivation and metallization techniques

– on target to increase annual production capacity from 400 MW to approximately 450 MW by the end of September 2009 and to 600MW by the end of the year

Looking ahead..

– the company expects to ship between 90 – 110MW of PV modules next quarter and believes gross margin will be in the 23.5% – 26.5% range. 

–  company reiterates full year 09 guidance of 350 – 400MW in PV shipments which is an increase of 75 – 100% over 08 levels


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