Trina Solar Ltd. Earnings: Here’s Why Investors are Selling Shares Now

Trina Solar Ltd. (NYSE:TSL) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 13.84%.

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Trina Solar Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.9 in the quarter versus EPS of $-0.42 in the year-earlier quarter.

Revenue: Decreased 25.63% to $260.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Trina Solar Ltd. reported adjusted EPS loss of $0.9 per share. By that measure, the company missed the mean analyst estimate of $-0.72. It missed the average revenue estimate of $295.86 million.

Quoting Management: “While the average selling price (“ASP”) of modules continued to decline in the first quarter due to the lingering supply-demand imbalance in the global PV industry, the rate of decline has slowed from previous quarters,” said Mr. Jifan Gao, chairman and CEO of Trina Solar. “In this environment, we continue to focus on improving operational efficiency and exercising financial discipline. In the first quarter, the reductions in non-silicon costs we achieved outweighed the fall in ASP, and we also collected a sizeable amount of overdue accounts receivables. These efforts enable us to maintain strong liquidity and a robust balance sheet, making us better positioned to capture future growth opportunities.”

Key Stats (on next page)…

Revenue decreased 0% from $0 in the previous quarter. EPS increased to $-0.9 in the quarter versus EPS of $-1.23 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.56 to a loss $0.57. For the current year, the average estimate has moved up from a loss of $2.05 to a loss of $1.99 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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