Boston, MA 03/10/2014 (wallstreetpr) – Trina Solar Limited (ADR) (NYSE:TSL) has been soaring in the market after reporting impressive fourth quarter earnings that saw its revenue surge as compared to the fourth quarter of 2012. Its stock jumped even further last week after Cowen raised their earnings estimates amidst prospects of strong growth in the current fiscal year. Trina Solar is expected to benefit from higher shipments in the year as well as lower operating expenses which should result in better earnings for the year.
The expansive growth being experienced in China should be the main driving force behind Trina growth as the demand for energy requirements continues to grow. Cowen have raised their price target for Trina stock to $21
Trina Fourth quarter financials
Net revenues
Trina Solar Limited (ADR) (NYSE:TSL)’s net revenue for the fourth quarter surged to $525.6 million an increase of 73.6% compared to the same quarter a year ago, but a drop of 4.1% sequentially. Total shipment for the quarter came in at 770.1MW compared to a low of 414.5MW in the fourth quarter of 2012 but lower to highs of 774.6MW for the third quarter of the same year.
Cost of revenues
Trina Solar Limited (ADR) (NYSE:TSL)’s Cost of revenues for the fourth quarter dropped by 4% sequentially coming in at $446.5 million but higher by 50.3% when compared to the same quarter of 2012. The increase in fourth quarter cost of revenues was mainly as a result of an impairment loss of $9.3 million.
Gross profit and margin
Gross profit for the fourth quarter was slightly lower at $79.1 million compared to highs of $83.4 million in the third quarter but higher compared to lows of $5.6 million reported in the fourth quarter of 2012. Gross margin for the year came in at 15.1% against 15.2% in the third quarter and lows of 1.9% for the fourth quarter of 2012.
Q1 Guidance
Trina Solar Limited (ADR) (NYSE:TSL) expects to ship between 670MW and 700MW for the first quarter and between 3.6GW and 3.8GW for the year which should be an increase of 40%. Trina Solar Limited (ADR) (NYSE:TSL) moved slightly up by 0.82% on Friday trading session to close the week at a high of $18.34
