UPDATE 2-Trina profit jumps, Euro worries knock shares
"If you had to pick one that would make it, I think Trina would make the short list," he said.
Trina reported third-quarter profit climbed to $82.9 million, or $1.08 per American Depository Share (ADS), from $39.8 million, or 64 cents per ADS, a year ago. The average Wall Street forecast was 87 cents per ADS, according to Thomson Reuters I/B/E/S.
Revenue more than doubled to $508.3 million, well above the $420.6 million analysts had forecast.
But investors, worried about the debt crisis in Europe that has pressured the euro, drove solar stocks lower. Trina shares were down 4.4 percent to $22.83 on the New York Stock Exchange.
Gross margin for the quarter was 31 percent, compared with 29 percent a year earlier. The company cut its polysilicon and manufacturing costs even as module prices weakened from a year ago.
The current strong demand for solar modules should help the company increase the average selling price of its modules in the fourth quarter, keeping its gross margins above 30 percent.
"We expect ASPs growing in both U.S. dollar and euro terms," Chief Financial Officer Terry Wang told a conference call.
While many analysts have forecast potentially steep declines in selling prices next year as the industry ramps up manufacturing capacity, Wang said Trina's lower-priced modules may be protected. Continued...