Earnings Preview for SolarEdge Technologies
SolarEdge Technologies (NASDAQ:SEDG) unveils its next round of earnings this Tuesday, February 16. Here is Benzinga's everything-that-matters guide for the earnings announcement.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
Analysts expect SolarEdge Technologies earnings of $0.86 per share. Revenue will likely be around $356.25 million, according to the consensus estimate. SolarEdge Technologies EPS in the same period a year ago totaled $1.65. Revenue was $418.22 million.
Why Analyst Estimates And Earnings Surprises Are Important
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to post earnings in line with the consensus estimate when it reports Tuesday, EPS would be down 47.88%. Sales would be down 14.82% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:
EPS Estimate | 0.81 | 0.69 | 1.25 | 1.25 |
EPS Actual | 1.21 | 0.97 | 0.95 | 1.65 |
Revenue Estimate | 341.88 M | 319.42 M | 420.35 M | 413.78 M |
Revenue Actual | 338.10 M | 331.85 M | 431.22 M | 418.22 M |
Stock Performance
Shares of SolarEdge Technologies were trading at $330.78 as of February 11. Over the last 52-week period, shares are up 205.31%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. SolarEdge Technologies is scheduled to hold the call at 16:30:00 ET and can be accessed here.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
