Chinese solar PV maker Trina Solar Ltd. (NYSE: TSL) posted second-quarter 2014 results before markets opened on Tuesday morning. The company posted diluted earnings per American Depositary Share (ADS) of $0.14, well below its first quarter earnings, but right at the consensus estimate at Thomson Reuters. Revenues rose quarter-over-quarter to $519.4 million, which was sharply below the consensus estimate of $562.35 million.

Module shipments rose 69% sequentially to 943.3 megawatts in the second quarter, but gross profits were down 12.3% as gross margins fell from 20.6% in the first quarter to 15.4%. Operating margin fell sequentially from 8.6% to 3.0% and net income was down 61% to $10.3 million.

In June the company sold 8.8 million ADSs in a secondary offering at $11 per ADS and sold $150 million in convertible senior notes. The company raised $222.7 million from the two offerings.

The company was also hit with a tariff of 18.56% in June on sales of its modules in the United States. This is the lowest tariff levied on any of the Chinese solar makers, but there’s little question that it hurt Trina’s margins and profits.

Trina said that its sales had “picked up dramatically” in the second quarter, and singled out the United States as a source of “robust demand.” Now if only the margins would improve …

For the third quarter, the company expects to ship between 1,060 and 1,120 megawatts of solar modules. Trina expects blended gross margin for the full year to be in the mid-teens with third-quarter gross margin slightly lower. Total module shipments for the year continue to be forecast at between 3,600 and 3,800 megawatts.

Trina’s shares were down nearly 8% in Tuesday premarket trading, at $12.34 in a 52-week range of $8.62 to $18.77. The consensus price target from Thomson/First Call is around $18.40.

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