Increasing demand for solar energy and solar products proved to be a boon for Trina Solar Ltd. (NYSE: TSL) and LDK Solar Co. Ltd. (NYSE: LDK) as both companies reported Wednesday that their earnings soared in the third quarter. Investors were not impressed, however, pushing shares lower.
Trina Solar, a maker of solar photovoltaic products, said its net income quadrupled to $32.1 million, or $1.17 per American Depository Share, from the same period of the previous year. These results included a foreign currency exchange loss of $4.9 million. Revenue more than tripled to $290.7 million.
Analysts surveyed by Thomson Reuters, on average, had expected a profit of $1.21 per share on revenue of $276.9 million.
However, the company lowered its full-year 2008 revenue estimate to range between $800 and $850 million because the company expects fewer product shipments for the year than previously forecast.
Shares of Trina Solar fell to a 52-week low of $6.81 Wednesday. The share price is 86.8% lower than a year ago.
LDK Solar's quarterly earnings more than doubled to $88.4 million, or 77 cents per American Depository Share, from the same period last year. Revenue surged 70.0% to $541.8 million.
Analysts had forecast a profit of 71 cents per share on revenue of $486.7 million.
For the fourth quarter, this China-based producer of materials for power-producing solar cells expects revenue of $555 million to $565 million, compared to the analysts' forecast of $513 million for the quarter.
On Wednesday, shares of LDK fell $1.83, or 12.3%, to $13.10. The share price is 62.9% lower than a year ago.
China-based Suntech Power Holdings (NYSE: STP) is scheduled to report its earnings tomorrow; see a preview of results here.
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Reader Comments (Page 1 of 1)
11-20-2008 @ 10:22AM
Total Solar Energy said...
solar stocks are taking a beating at the moment. look at emcore. down from $15 to nearly $1. yikes!
http;//www.totalsolarenergy.co.uk