Dallas, Texas 04/16/2014 (FINANCIALSTRENDS) – China head quartered solar power equipment and panels manufacturer Trina Solar Limited (ADR)(NYSE:TSL) saw its share price rebound impressively yesterday, just a day after investors had reduced their exposure to the stock, post its announcement of reduced shipments outlook of its products to Europe in 1Q.
When the announcement came out on 14th April that it foresees shipments in 1Q could come in only at 570 megawatts of panels (best case), which represented a 18 percent dip over its previous estimates, the stock of Trina Solar Limited (ADR)(NYSE:TSL) lost close to 6 percent of its share price.
The maker of solar panels which are used to set up solar power farms in Europe, Asia and North American markets also predicted that the shipments to Europe will eventually pick up as the regulators in those countries reach a consensus on the import price of these solar power related equipment.
Hence it went on to reiterate its previous full year guidance of 3.8 gigawatts of power at the high end. To offset these downward predictions, the Chinese firm increased its guidance on its gross margins. It expects margins to come in the range of 18 to 20 percent as against the 15 percent it had forecasted at the beginning of the year. This has been made possible due to increase in the average sale price it has been able to attract in the first quarter of this year.
Investors seemed to look the positive aspects of the company’s update and decided to return into the stock a day after their knee jerk reaction on 14th April trading. While Trina Solar Limited (ADR)(NYSE:TSL) recouped all its previous day losses during 15th April trading, the stock of other China based solar panel manufacturers took a severe beating at the markets yesterday.
