Trina Beats, But Day of Euro Fears Awaits

NEW YORK (TheStreet) -- Trina Solar(TSL) beat the Street consensus in its pre-market first quarter earnings report on Tuesday morning. It was another day of major market fears about the European Union, though, and most solar shares were trading down in the pre-market session.
On Monday, Yingli Green Energy(YGE) had reported a good first quarter with record gross margins, but Yingli shares ended Monday down again as the macroeconomic fears continued to dominate solar company fundamentals.As the euro slipped again in trading, Yingli stock was down 5% and Trina Solar stock down more than 7%, early in trading during Tuesday's pre-market session, though pre-market trading in solar shares can be very light.Trina Solar reported first-quarter earnings of 66 cents per share and revenue of $336.8 million. The Street was looking for earnings of 61 cents and revenue of $330 million.Trina Solar also outperformed on its own gross margin guidance, generating a gross margin level of 30.9% in the first quarter, above its previous estimate of a 26% to 28% gross margin. Lower polysilicon prices were responsible for the gross margin outperformance.Trina Solar also edged out its shipment guidance, delivering approximately 193 megawatts of modules in the first quarter, just above the high end of its previous guidance, which had been 190 MW.The big number in the Trina Solar earning report was the foreign exchange charge, as solar investors continue to worry about solar companies' ability to maintain earnings power in a declining euro environment, compounded by a declining feed-in tariff environment.Trina Solar had a loss in foreign currency exchange of $14.5 million in the first quarter. The forex loss was net of a gain in fair value of foreign currency hedge gains of approximately $13 million. The forex charge equaled a loss of 21 cents per share.Trina said it expected gross margins to fall to the high 20s in the second quarter, based on the current exchange rate between the euro and the dollar.Trina Solar tried to play down the European unrest in its earnings release, with its chairman, Jifan Gao, saying, "With regard to current macroeconomic concerns involving the European markets and the euro, we are still seeing strong demand for our products, and that our shipment flow to customers has not been negatively affected by credit availability or other related factors. We continue to expand and refine our internally-managed currency hedging program, which has been in place since the fourth quarter of 2008."Trina Solar reaffirmed its full-year guidance of 750 MW to 800 MW of module shipments, with between 200 MW to 205 MW of modules shipped in the second quarter. The Chinese solar company indicated that quarter by quarter through the end of the year the shipment level will increase, and in the second half of the year, more shipments will be going to the U.S.Trina also reiterated its plans to further reduce non-polysilicon manufacturing costs to 70 cents before the end of 2010.

Source:www.thestreet.com

Trina Solar Reiterated Buy

Collins Stewart is calling for Trina Solar (NYSE:TSL) to report a profit of 62 cents a share on revenue of $243 million, that's ahead of the consensus forecast of 61 cents a share on sales of $248 million.Collins Stewart is forecasting a second-quarter profit of 41 cents a share on revenue of $329 million for Trina Solar (NYSE:TSL), estimates the brokerage firm said may prove to be conservative. "Given Trina Solar's (NYSE:TSL) cost leadership in the crystalline module segment of the industry and its strong growth and brand, we find this multiple too low and discount unwarranted," Collins Stewart said in a research note.

Source: www.chinavestor.com/solar

Trina Solar to Sponsor Renault F1 Team

CHANGZHOU, China, May 12 /PRNewswire-Asia-FirstCall/ -- Trina Solar Limited (NYSE: TSL) ("Trina Solar" or the "Company"), a leading integrated manufacturer of solar photovoltaic (PV) products from ingots to modules, today announced through its subsidiary, Trina Solar (Switzerland) AG, has become a sponsor of the Renault F1 Team, a new partnership that is expected to increase Trina Solar's global brand awareness while promoting the wide-scale adoption of sustainable technologies.The sponsorship will take the form of on-car logo branding on the nose of the R30 race car, ensuring excellent opportunities for worldwide marketing exposure. Furthermore, this partnership will showcase day-to-day applications of solar PV technology in various high-visibility areas of the Renault F1 Team operations including the team's paddock motorhome and VIP hospitality facilities.Trina Solar and the Renault F1 Team will also conduct a joint analysis and evaluation program to assess how Trina Solartechnologies can be integrated into the operations and ongoing upgrades of the Renault F1 Team's Enstone production facilities in a performance-proven, cost-effective manner."Trina Solar is thrilled to partner with the Renault F1 Team to bring solar PV to the world of Formula One racing," said Mr. Jifan Gao, Chairman and CEO of Trina Solar. "With F1's proven ability to boost brand awareness, we look forward to working with Renault F1 Team at Formula One events around the world to spur the development and adoption of sustainable technologies."As the world's most prestigious sport, Formula One embodies the spirit of technological innovation. As one of the world's largest, most technologically progressive solar PV companies, Trina Solar has selected the Renault F1 Team as a strategic partner because of the Renault Group's demonstrated commitment to green automotive technologies. By partnering with the Renault F1 Team, Trina Solar hopes to help elevate the status and widespread adoption of solar PV, while contributing to Formula One's progressive transformation into a more sustainable and greener enterprise."We are delighted to welcome Trina Solar onboard as a new partner of the Renault F1 Team," said Renault F1 Team ChairmanGerard Lopez. "Trina Solar is the sport's first major sponsor from the domain of environmental technologies and we are also proud to welcome a global renewable energy company to the sport. We are excited about the development of this new relationship in three directions: first, to use Formula One as a global platform for promoting the adoption of advanced technologies; second, to explore how Trina Solar can increase value to the Renault F1 Team's operations while simultaneously allowing the team to reduce its environmental impact; and third, to explore mutual opportunities through Helios Max, a Genii Capital portfolio company specialised in project design and engineering for solar panel technology."

Wells Fargo Initiates Coverage on TSL

Trina Solar (TSL) gets an Outperform rating and valuation range of $31 – $35. “Trina’s industry-leading cost structure and growing brand recognition are big competitive advantages relative to peers, allowing the company to gain share in good markets and bad. We believe valuation is reasonable at 12x/11x 2010E/2011E EPS, the balance sheet is in good shape, and margins will continue to outshine peers. Whether you’re a solar bull or bear, Trina is a core holding, in our view.”

Trina Cuts Processing Costs

Posted 04/30/2010 07:12 PM ET

* Top-Rated Company

Trina Solar (TSL) ranks as one of China's most underappreciated solar companies, according to analysts at Auriga.

The solar module maker's strengths include a strong management team and a nimble approach that's helped it cut processing costs, the investment firm's analysts said in an April 13 note.

Trina plans to report its first-quarter results in late May. Per-share profit is expected to surge 259% to 61 cents, as sales climb 145% to $323.7 million.

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One rival's first-quarter report last week has boosted optimism about the solar sector. First Solar (FSLR) reported profit and sales that beat views last Wednesday. The firm also hiked its 2010 profit target.

Planned cuts to solar subsidies in Germany, the No. 1 solar market, have pulled demand for the renewable power source forward, Reuters said. Developers are rushing to install new systems before the subsidies are reduced.

But that also highlights one of the challenges facing Trina and its rivals: The sector is dependent on various government incentive programs that can come and go.

With that in mind, Trina has said it's working to sell to a range of countries, noting that Germany accounted for "only one-third" of its shipments in 2009.