I’ve made no secret of my love for Trina Solar (TSL). I’m a huge solar fan in general, and expect significant growth in the next few years as consumers demand more alternative energy solutions. From a margins and growth perspective I think TSL is one of the best solar companies out there.
Recently though, TSL has been giving me quite the headache. The stock has been down about 30% since February, and even when I thought I was getting in at a bargain rate, the stock continued to slide. Finally, TSL is back on the upswing this morning after a strong earnings report. The stock is up about 20% from yesterday’s close after the earnings announcement. (I kind of feel like a proud mom who made it through the turbulent teenage years and is now happily clapping at high school graduation.)
This morning Trina Solar reported earnings of $26.5 million during the first quarter of this year. This is its third consecutive quarterly profit, showing it can sustain profit growth. Notably, a year ago TSL reported a loss of $63.7 million, and quarter over quarter net income increase is almost 75%. Earnings per share were 37 cents – an insane 10x beat of the 3 cents per share that analysts predicted. Revenues were slightly lower than analyst estimates at $444.8M vs. $453M, but still represent a 71% increase over last year.
Today’s earning’s report has me sitting comfortably on the bull train for TSL. As supported by the numbers today, I expect significant growth from TSL as both the company and the solar industry expand in the near future.