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Some Good, Some Bad From Trina Solar’s Updated Q3 Guidance

November 5, 2013

Q3 2013 has been a good quarter for the likes of First Solar (FSLR :NASDAQ) and SunPower (SPWR :NASDAQ) and now Trina Solar (TSL :NYSE) is trying to join the party by offering updated guidance.

Investors will be happy to hear that module shipments will be between 750 megawatts (MW) to 780 MW, a healthy increase from the previous guidance of 650 MW to 680 MW.

Gross margins are also better than expected as Trina Solar is now offering a range of 14.5 percent to 15.5 percent, a marked improvement from the low double digits previously offered.

But these improvements will not automatically lead to higher profits as Trina Solar stated that net earnings will be impacted by an incremental accounts receivable provision of between $9.5 million and $10.5 million and a foreign currency exchange gain of $7.5 million to $8.5 million, net of change in fair value of derivative instruments.

Unsurprisingly, Trina Solar also stated that they would be revising its full-year shipment guidance of 2.3 gigwatts (GW) to 2.4 GW during their Q3 2013 conference call later this month.

Shares of Trina Solar were down 2.09 percent in afternoon trading while shares of First Solar were up 0.44 percent and SunPower shares were down 0.88 percent.

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