Trina Solar Limited
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Trina Solar Limited crushed expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share dropped to a loss.
Margins contracted across the board.
Trina Solar Limited reported revenue of $435.7 million. The 23 analysts polled by S&P Capital IQ anticipated sales of $350.6 million on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $641.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.93. The 21 earnings estimates compiled by S&P Capital IQ anticipated -$0.43 per share. GAAP EPS were -$0.93 for Q4 versus $2.12 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 7.1%, 2,430 basis points worse than the prior-year quarter. Operating margin was -14.4%, 3,700 basis points worse than the prior-year quarter. Net margin was -15.1%, 3,770 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $333.8 million. On the bottom line, the average EPS estimate is -$0.33.
Next year's average estimate for revenue is $1.68 billion. The average EPS estimate is -$0.31.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,074 members out of 1,275 rating the stock outperform, and 201 members rating it underperform. Among 270 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give Trina Solar Limited a green thumbs-up, and 80 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Trina Solar Limited is hold, with an average price target of $7.62.
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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. 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.