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SolarEdge (SEDG) Q1 Earnings Beat Estimates, Revenues Rise

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SolarEdge Technologies, Inc. SEDG reported first-quarter adjusted earnings of $1.20 per share. The bottom line improved by 22.4% from the prior-year quarter’s earnings of 98 cents per share.

The Zacks Consensus Estimate for the first quarter was pegged at 80 cents per share.

Barring one-time adjustments, the company posted GAAP earnings of 60 cents per share compared with 55 cents in the year-ago quarter.

Revenues

SolarEdge’s revenues of $655.1 million in the first quarter surpassed the Zacks Consensus Estimate of $635 million by 3.2%. The top line surged 62% from the year-ago quarter’s $405.5 million.

Revenues from the solar segment were $608 million, up 62% from $376.4 million in the prior-year quarter.

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

SolarEdge Technologies, Inc. price-consensus-eps-surprise-chart | SolarEdge Technologies, Inc. Quote

Operational Highlights

SolarEdge shipped a total of 2.13 gigawatts of inverters in the reported quarter.

The adjusted gross margin contracted by 810 basis points from the prior-year gross margin of 36.5% to 28.4%.

Adjusted operating expenses went up 30% year over year to $98.9 million.

The adjusted operating income in the quarter totaled $87.2 million, up 21% from the year-ago quarter’s $71.9 million.

Financial Performance

SolarEdge had $1002.8 million of cash and cash equivalents as of Mar 31, 2022, up from $530.1 million as of Dec 31, 2021.

Cash outflow from the operating activities amounted to $163 million in the first quarter against the cash inflow from the operating activities of $24.1 million in the year-ago period.

Total long-term liabilities were $1,103.6 million as of Mar 31, 2022 compared with $1,056.8 million as of Dec 31, 2021.

Q2 Guidance

In the second quarter of 2022, SEDG expects revenues in the range of $710-$740 million. The Zacks Consensus Estimate for the same is pegged at $670 million.

Revenues from the solar segment in the second quarter are projected in the range of $660-$690 million.

While the company’s adjusted gross margin is estimated at 26-29%, the gross margin in the solar segment is anticipated at 28-31%.

Zacks Rank

SolarEdge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

Enphase Energy ENPH reported first-quarter 2022 adjusted earnings of 79 cents per share, which improved by 41.1% from the 56 cents reported in the prior-year quarter. The Zacks Consensus Estimate for first-quarter earnings is pegged at 68 cents.

Enphase Energy’s first-quarter revenues of $441.3 million beat the Zacks Consensus Estimate of $434 million by 1.7%. ENPH’s top line soared 46.2% from the year-ago quarter’s $301.8 million.

First Solar, Inc. FSLR reported a first-quarter 2022 loss of 41 cents per share, which came in line with the Zacks Consensus Estimate. The bottom line deteriorated significantly from the prior-year quarter’s earnings of $1.96 per share.

First Solar’s first-quarter sales were $367 million, which lagged the Zacks Consensus Estimate of $567.4 million by 35.3%. FSLR’s top line also declined by 54.3% from the year-ago quarter’s $803.4 million.

Upcoming Solar Release

ReneSolaSOL: The Zacks Consensus Estimate for ReneSola’s first-quarter earnings is pegged at a loss of 6 cents per share.

The Zacks Consensus Estimate for its first-quarter sales, pegged at $3.9 million, suggests a decline of 82.7% from the prior-year figure. SOL has a four-quarter earnings surprise of 94.17%, on average.


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SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report

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