U.S. markets open in 3 hours 3 minutes
  • S&P Futures

    4,239.25
    +3.00 (+0.07%)
     
  • Dow Futures

    33,892.00
    +57.00 (+0.17%)
     
  • Nasdaq Futures

    14,273.50
    +15.25 (+0.11%)
     
  • Russell 2000 Futures

    2,291.20
    -1.30 (-0.06%)
     
  • Crude Oil

    73.35
    +0.50 (+0.69%)
     
  • Gold

    1,782.60
    +5.20 (+0.29%)
     
  • Silver

    25.99
    +0.13 (+0.51%)
     
  • EUR/USD

    1.1952
    +0.0009 (+0.07%)
     
  • 10-Yr Bond

    1.4720
    0.0000 (0.00%)
     
  • Vix

    16.51
    -1.38 (-7.71%)
     
  • GBP/USD

    1.3965
    +0.0018 (+0.13%)
     
  • USD/JPY

    110.9860
    +0.3510 (+0.32%)
     
  • BTC-USD

    34,002.18
    +2,226.39 (+7.01%)
     
  • CMC Crypto 200

    813.79
    +19.46 (+2.45%)
     
  • FTSE 100

    7,101.84
    +11.83 (+0.17%)
     
  • Nikkei 225

    28,874.89
    -9.24 (-0.03%)
     

SolarEdge (SEDG) Q1 Earnings Miss Estimates, Revenues Down Y/Y

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

Shares of SolarEdge Technologies, Inc. SEDG decline 16% to reach $218.57 on May 3, reflecting investors’ skepticism following its first-quarter results.

It reported first-quarter 2021 adjusted earnings of 98 cents per share, which missed the Zacks Consensus Estimate of $1.01 by 3%. The bottom-line figure, however, improved 3% from 95 cents reported in the prior-year quarter.

Barring one-time adjustments, the company posted GAAP earnings of 55 cents per share compared with 81 cents in the year-ago quarter.

Revenues

SolarEdge’s revenues of $405.5 million in the first quarter surpassed the Zacks Consensus Estimate of $396 million by 2.4%. The top line, however, declined 6% from the year-ago quarter’s $431.2 million.

Operational Highlights

SolarEdge shipped a total of 1.69 Gigawatts (AC) of inverters in the reported quarter.

Gross profit totaled $140 million in the first quarter of 2021.

Total operating expenses rose 32.8% year over year to $95.9 million. The uptick in expenses can be attributed to higher research and development, sales and marketing, and general and administrative expenses.

Operating income during the quarter totaled $44.1 million, down from $67.8 million in the year-ago 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

Financial Performance

SolarEdge had $685.1 million of cash and cash equivalents as of Mar 31, 2021, down from $827.1 million at the end of 2020.

Cash flow from operating activities amounted to $24.1 million at the end of first-quarter 2021, down from $107.7 million a year ago.

Long-term liabilities were $966.9 million at the end of the first quarter compared with $915.2 million as of Dec 31, 2020.

Guidance

For second-quarter 2021, SolarEdge expects to generate revenues of $445-$465 million. The Zacks Consensus Estimate for the same is pegged at $458.2 million, which lies above the midpoint of the company’s guided range.

Additionally, revenues from solar products during the second quarter are projected in the range of $405-$420 million.

While the company’s GAAP gross margins are expected to be 32-34%, gross margins from the sale of solar products are anticipated to be 36-38%.

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, Inc. ENPH reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents by 36.6%.

First Solar Inc. FSLR reported first-quarter 2021 adjusted earnings of $1.96 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 96%.

Sunpower Corp. SPWR reported first-quarter 2021 adjusted earnings of 5 cents per share, which surpassed the Zacks Consensus Estimate of break-even.

Zacks Top 10 Stocks for 2021

In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?

Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.

Access Zacks Top 10 Stocks for 2021 today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

First Solar, Inc. (FSLR) : Free Stock Analysis Report

SunPower Corporation (SPWR) : Free Stock Analysis Report

Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report

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

To read this article on Zacks.com click here.

Zacks Investment Research