Trina Solar
By Roopak Chakravarty
Apr 18, 2008
Trina Solar is shining brightly amidst a solar boom. It is much more attractively valued than its peers and has similar fundamentals. The company has posted an average surprise of over 18% during the past four quarters. This year’s earnings estimates have increased 22 cents to $2.81 per share over the past 60 days. Analysts are expecting a further 57% jump in earnings next year. Additionally, the most accurate estimate shows almost 18% growth for this year.
Full Analysis
Trina Solar (TSL) through its subsidiary, Changzhou Trina Solar Energy Co., Ltd., engages in the manufacture and sale of solar-power products primarily in China. The company's solar modules provide electric power for residential, commercial, industrial, and other applications worldwide.
It produces solar modules ranging from 160 watts to 185 watts in power output. The company manufactures monocrystalline ingots, wafers, and solar cells for use in its solar module production. Trina Solar Limited provides silicon wafers to toll manufacturers and purchase solar cells from toll manufacturers.
The company recently canceled plans to build a $1 billion polysilicon plant after the market for the raw material used in solar cells loosened. There has been a scarcity of polysilicon available for the burgeoning global solar cell market, but Trina said recent developments have been "favorable" for long-term supply of the raw material. This is actually a positive for the company since it was trying to bite off more than it could chew.
In early-March, the company reported that fourth-quarter earnings surged on strong demand for solar-power systems and higher profit margins. The Chinese solar company's net income more than tripled to $15.7 million, or 62 cents per share, from $4.6 million, or 28 cents per share. Revenue climbed to $101.4 million from $38.8 million. Analysts expected 49 cents per share.
"We are extremely pleased with our results in the quarter to cap a year of many important achievements. We met or exceeded our annual 2007 targets for product shipment, revenue and net income, as the benefits of our fully integrated business model increased our bottom line," said Trina Solar's Chairman and CEO, Jifan Gao.
The company has posted an average surprise of over 18% during the past four quarters. This year’s earnings estimates have increased 22 cents to $2.81 per share over the past 60 days. Analysts are expecting a further 57% jump in earnings next year. Additionally, the most accurate estimate shows almost 18% growth for this year.
Source, www.zacks.com
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