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How Did Trina Solar Stock React to Its 3Q16 Results?

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Nov. 25 2016, Published 4:07 p.m. ET

Earnings announcement

Trina Solar (TSL) announced its 3Q16 earnings results before market hours on November 23, 2016. In this series, we’ll take a detailed look at the company’s 3Q16 results, compare the results with analyst expectations, and analyze any factors that may have caused the deviation.

We’ll also look at Trina Solar’s annualized manufacturing capacity at the end of 3Q16 and conclude the series with a discussion on analysts’ expectations for Trina Solar’s future margins.

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Trina Solar stock reaction

Trina Solar posted mixed results for 3Q16. It reported earnings per ADS (American depository shares) of $0.29 compared to analysts’ consensus estimate of $0.07.

Below is what led to a flat closing for Trina Solar stock on November 23, 2016:

  • lower-than-anticipated revenue
  • continued oversupply concerns of solar modules in the global markets
  • an anticipated fall in gross margins due to an expected fall in ASPs (average selling prices)

On November 23, 2016, TSL stock closed at $10.32.

Peer performances

On the day of Trina Solar’s 3Q16 earnings release, peers First Solar (FSLR) and SunPower (SPWR) closed nearly flat during the intraday trading session. Yingli Solar (YGE) fell nearly 1.0%. However, Canadian Solar (CSIQ) and JA Solar (JASO) rose nearly 2.0% and 3.0%, respectively, in the same period.

The Guggenheim Solar ETF (TAN) tracks the broad-based solar market. It rose nearly 2.0% at the close of November 23, 2016. The SPDR S&P 500 ETF (SPY) closed at a new record high that day.

In the next part of this series, we’ll look at Trina Solar’s shipments in 3Q16.

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