U.S. markets closed
  • S&P 500

    4,544.90
    -4.88 (-0.11%)
     
  • Dow 30

    35,677.02
    +73.94 (+0.21%)
     
  • Nasdaq

    15,090.20
    -125.50 (-0.82%)
     
  • Russell 2000

    2,291.27
    -4.92 (-0.21%)
     
  • Crude Oil

    83.98
    +1.48 (+1.79%)
     
  • Gold

    1,793.10
    +11.20 (+0.63%)
     
  • Silver

    24.39
    +0.22 (+0.91%)
     
  • EUR/USD

    1.1646
    +0.0015 (+0.13%)
     
  • 10-Yr Bond

    1.6550
    -0.0210 (-1.25%)
     
  • GBP/USD

    1.3760
    -0.0036 (-0.26%)
     
  • USD/JPY

    113.4800
    -0.5080 (-0.45%)
     
  • BTC-USD

    61,403.21
    +916.34 (+1.51%)
     
  • CMC Crypto 200

    1,453.34
    -49.69 (-3.31%)
     
  • FTSE 100

    7,204.55
    +14.25 (+0.20%)
     
  • Nikkei 225

    28,804.85
    +96.27 (+0.34%)
     

SolarEdge (SEDG) Q2 Earnings Beat Estimates, Revenues Up 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
In this article:
  • 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 appreciated 16.3% to reach $299.81 per share on Aug 3, reflecting investors' optimism following its second-quarter 2021 results.

The company reported second-quarter adjusted earnings of $1.28 per share, which surpassed the Zacks Consensus Estimate of $1.12. The bottom line, moreover, surged 32% from the prior-year quarter’s 97 cents.

Barring one-time adjustments, the company posted GAAP earnings of 82 cents per share compared with the 70 cents witnessed in the year-ago quarter.

Revenues

SolarEdge’s revenues of $480.1 million in the second quarter topped the Zacks Consensus Estimate of $457 million. The top line also jumped 44.7% from the year-ago quarter’s $331.9 million on solid commercial shipments.

Revenues from the solar segment were $431.5 million, up 39% from the $310.1 million seen in the same quarter, last year.

Operational Highlights

SolarEdge shipped a total of 1.64 Gigawatts (AC) of inverters in the reported quarter.

Gross profit totaled $156.2 million, soaring 51.6% from the prior year’s $103 million.

Total operating expenses flared up 37.8% year over year to $100.6 million. This uptick can be attributed to higher research & development, sales & marketing and general & administrative expenses.

Operating income during the quarter totaled $55.6 million, up 85.4% from the year-ago quarter’s $30 million.

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 $524.1 million of cash and cash equivalents as of Jun 30, 2021, down from $827.1 million at the end of 2020.

Cash flow from operating activities amounted to $62.8 million at the end of second-quarter 2021, down from the prior year’s $167.1 million.

Long-term liabilities were $986.9 million at the end of the second quarter compared with $915.3 million as of Dec 31, 2020.

Q3 Guidance

For third-quarter 2021, SolarEdge expects revenues of $520-$540 million. The Zacks Consensus Estimate for the same is pegged at $510.1 million, lower than the company’s guided range.

Additionally, revenues from solar products in the third quarter are projected to be $460-$480 million.

While the company’s non-GAAP gross margin is estimated to be 32-34%, gross margin from the sale of solar products is anticipated to be 35-37%.

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 delivered second-quarter adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 42 cents.

First Solar Inc. FSLR reported adjusted earnings of 77 cents per share, which outpaced the Zacks Consensus Estimate of 60 cents for the June-end quarter.

SunPower Corp. SPWR posted adjusted earnings of 6 cents per share for the April-June quarter, which beat the Zacks Consensus Estimate of 3 cents.


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