Trina Solar Limited (TSL) has seen analysts hike earnings forecasts for this year and next. Additionally, Wall Street is projecting year-over-year earnings per share growth of 131% for 2008.

Company Description

Trina Solar manufactures mono and multicrystalline photovoltaic (PV) modules. The company’s high-quality PV modules provide clean and reliable solar electric power to on-grid and off-grid residential, commercial, industrial and utility scale applications around the world. TSL has local sales and marketing offices as well as installation partners throughout Asia, Europe and North-America. Founded in 1997, the company is based in Changzhou, the People’s Republic of China.

Recent Events

The company recently announced that it began the shipping process to provide more than 13,400 solar PV modules to power the Atlantic City Convention Center (“ACCC”). TSL noted that this supply comes as part of a signed agreement with general contractor American Capital Energy, who is managing project integration and installation for Pepco Energy Services and the Atlantic City Convention & Visitors Authority (“ACCVA”).

“We are very pleased that Trina Solar modules were chosen for this landmark roof-mounted system,” stated Jifan Gao, Trina Solar’s Chairman and Chief Executive Officer. “We are delighted to work with a proven solar system developer such as American Capital Energy as we enter this key growth market to provide efficient, clean solar energy in the years ahead.”

ON Sep 19, Trina announced the inauguration of a 26 MW PV plant, consisting of an installation that uses primarily PV modules manufactured by Trina Solar, in Fuente Alamo, Murcia, in the south-east of Spain. TSL explained that the project has been carried out by Gestamp Asetym Solar SA (”Gestamp Asetym”), a Spanish provider of solar system solutions.

Trina added that this installation represents one of the largest PV plants so far in Europe and that is delighted to strengthen its business relationship with its key partner Gestamp Asetym, with whom TSL expects to continue to work closely in the future, not only in Spain but also in other countries in Europe as business expands.’

On Sep 12, TSL’s subsidiary, Changzhou Trina Solar Energy Co. Ltd., entered into a two-year sales agreement with predetermined prices with Invictus NV, a Belgium company, expected to start in 2009.

Trina will supply Invictus with 20 MW and 30 MW for 2009 and 2010, respectively, with an option to purchase additional 10 MW during each year.

Under this two year agreement starting in 2009 with predetermined prices, Trina Solar will supply Invictus with 20 MW and 30 MW for 2009 and 2010, respectively, with an option for Invictus to purchase an additional 10 MW during each year.

Trina says it has now secured about 70% of its 2009 production target of 450 MW. 40% of that has been secured at predetermined prices.

Solid Quarterly Results

On Aug 18, Trina Solar reported second quarter earnings that missed Wall Street estimates by 3 cents. However, net income rose 25% to $17.1 million from $12.9 million. It included a one-time loss of $2 million. Earnings per share were 76 cents compared to analysts estimates of 79 cents per share.

Revenues surged 171.1% to $204.2 million from the year ago period. Total shipments grew to 47.57 MW, up from 20.33 MW in the second quarter of 2007. Average sales price (“ASP”) was $4.03 in the second quarter, up from $3.95 in the first quarter of 2008 and $3.70 in the year ago quarter.

“In the second quarter we continued to demonstrate the strength of our fully integrated business model as well as our ability to efficiently expand our manufacturing capacity, technology platform, and brand awareness as we penetrate new emerging solar markets,” said Jifan Gao, Chairman and CEO.

“We are also pleased with the outcome of our recent convertible bond offering, which can provide funding for our remaining 2008 capacity expansion requirements, in addition to our long-term debt facilities under examination,” he said.

Consensus Estimates are on the Rise

Trina has seen analysts hike earnings forecasts for this year and next. For the 2008 full year, estimates jumped 15 cents to $3.37 per share from $3.22 over the past 60 trading days. For the following year, Wall Street has earnings pegged at $4.37 per share, up from the two months-ago level of $4.16.

Additionally, Wall Street is projecting year-over-year earnings per share growth of 131% for 2008.

Content Courtesy: Zacks Investment Research

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