Fool Checkup: Trina Solar Earnings

Trina Solar (NYSE: TSL  ) reported earnings on Nov. 20. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Trina Solar missed estimates on revenues and exceeded expectations on earnings per share.

Compared to the prior-year quarter, revenue contracted significantly and GAAP loss per share expanded.

Margins contracted across the board.

Revenue details
Trina Solar reported revenue of $298.0 million. The 14 analysts polled by S&P Capital IQ predicted sales of $311.7 million on the same basis. GAAP reported sales were 38% lower than the prior-year quarter's $481.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at -$0.48. The 14 earnings estimates compiled by S&P Capital IQ predicted -$0.67 per share. GAAP EPS were -$1.00 for Q3 versus -$0.50 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 0.8%, 1,000 basis points worse than the prior-year quarter. Operating margin was -25.5%, 2,060 basis points worse than the prior-year quarter. Net margin was -19.3%, 1,280 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $284.3 million. On the bottom line, the average EPS estimate is -$0.58.

Next year's average estimate for revenue is $1.36 billion. The average EPS estimate is -$2.81.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,044 members out of 1,256 rating the stock outperform, and 212 members rating it underperform. Among 212 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 128 give Trina Solar a green thumbs-up, and 84 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Trina Solar is hold, with an average price target of $5.95.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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