- Trina (NYSE:TSL) has dropped to $9.19 premarket after beating Q3 revenue estimates, missing on EPS, and upping its full-year module shipment forecast to 5.5GW-5.6GW from 4.9GW-5.1GW (4.6GW-4.7GW to third parties). 700MW-750MW of 2015 shipments are still expected to go towards Trina's downstream solar projects.
- Financials: Hurting Q3 EPS: Gross margin was 17.4%, up 50 bps Y/Y but down 260 bps Q/Q. Trina attributes the Q/Q drop to ASPs dropping in most markets at a faster rate than cost per watt, as well as a mix shift towards China, India, and other emerging markets. Also: Trina recorded a $45M charge related to the settlement of a lawsuit involving bankrupt Solyndra. Excluding the charge, operating expenses were 11% of revenue ($87.3M) vs. 11.6% in Q2 and 10.9% a year ago. Trina ended Q3 with $486.1M in cash and $1.17B in bank borrowings ($1B short-term).
- Top-line performance: Q3 module shipments rose 38.3% Q/Q and 60.1% Y/Y to 1.7GW, topping guidance of 1.4GW-1.5GW (drove the revenue beat). 350MW of shipments were for Trina's own projects. Shipments are expected to total 1.5GW-1.6GW in Q4. 251.9MW of projects were connected to the grid, and record shipments were seen in China and the U.S.
- Various solar peers have also sold off post-earnings.
- Q3 results, PR