Tina Solar (TSL) Flubs Q1; Will It Derail Solar Rally?
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Price: $5.56 -1.77%
Rating Summary:
7 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
7 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Solar stocks climbed on Tuesday after Germany's Chancellor Angela Merkel vowed to avert a trade row with China over solar imports. Those gains are being pared on Wednesday in the wake of Trina Solar's (NYSE: TSL) weak Q1 report.
Trina reported Q1 EPS of ($0.90), $0.18 worse than the analyst estimate of ($0.72). Revenue also missed the mark, coming in at $260.2 million versus the consensus estimate of $295.86 million.
On a positive note, Trina management sees improving supply and demand balance moving forward. Costs are expected to stabilizing in Q2 and pricing is seen flat compared to Q1.
Commenting on potential EU duties, Trina said it was prepared and may response by outsourcing or relocating plants.
Yesterday analyst Vishal Shah of Deutsche Bank said he thinks the "solar rally has legs." The report noted improving demand from Japan, China, US and other emerging markets. Shah also thinks the supply situation look better.
"We believe EU/US/China tariff uncertainty remains the primary policy overhang for solar sector - a positive outcome on this front along with gradual profitability improvement could act as the next set of catalysts for solar stocks. US solar stocks [MEMC Electronic (NYSE: WFR), SunPower (Nasdaq: SPWR), First Solar (Nasdaq: FSLR)] along with Trina Solar's could continue to see positive momentum, in our view," he said.
On that front, the latest news out of EU isn't good. The European Union's trade chief vowed to tax Chinese solar panels next month.
"The commission has a clear responsibility, and the commissioner for trade has a clear responsibility, to follow through in terms of trade defense on behalf of Europe," John Clancy, spokesman for De Gucht, told reporters yesterday in Brussels. "It's about trade justice and doing the right thing for Europe's workers and European companies."
LDK Solar Co., Ltd. (NYSE: LDK) and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) are among solar stocks trading lower in sympathy with Trina Solar Limited. In the past 30 days, Trina is higher by 30%.
Deutsche Bank has a Hold rating on Trina Solar with a price target of $5.00.
For an analyst ratings summary and ratings history on Trina Solar (NYSE: TSL) click here. For more ratings news on Trina Solar click here.
Shares of Trina Solar closed at $6.79 yesterday.
Trina reported Q1 EPS of ($0.90), $0.18 worse than the analyst estimate of ($0.72). Revenue also missed the mark, coming in at $260.2 million versus the consensus estimate of $295.86 million.
On a positive note, Trina management sees improving supply and demand balance moving forward. Costs are expected to stabilizing in Q2 and pricing is seen flat compared to Q1.
Commenting on potential EU duties, Trina said it was prepared and may response by outsourcing or relocating plants.
Yesterday analyst Vishal Shah of Deutsche Bank said he thinks the "solar rally has legs." The report noted improving demand from Japan, China, US and other emerging markets. Shah also thinks the supply situation look better.
"We believe EU/US/China tariff uncertainty remains the primary policy overhang for solar sector - a positive outcome on this front along with gradual profitability improvement could act as the next set of catalysts for solar stocks. US solar stocks [MEMC Electronic (NYSE: WFR), SunPower (Nasdaq: SPWR), First Solar (Nasdaq: FSLR)] along with Trina Solar's could continue to see positive momentum, in our view," he said.
On that front, the latest news out of EU isn't good. The European Union's trade chief vowed to tax Chinese solar panels next month.
"The commission has a clear responsibility, and the commissioner for trade has a clear responsibility, to follow through in terms of trade defense on behalf of Europe," John Clancy, spokesman for De Gucht, told reporters yesterday in Brussels. "It's about trade justice and doing the right thing for Europe's workers and European companies."
LDK Solar Co., Ltd. (NYSE: LDK) and Yingli Green Energy Holding Co. Ltd. (NYSE: YGE) are among solar stocks trading lower in sympathy with Trina Solar Limited. In the past 30 days, Trina is higher by 30%.
Deutsche Bank has a Hold rating on Trina Solar with a price target of $5.00.
For an analyst ratings summary and ratings history on Trina Solar (NYSE: TSL) click here. For more ratings news on Trina Solar click here.
Shares of Trina Solar closed at $6.79 yesterday.
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