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SolarEdge (SEDG) Q3 Earnings Beat, Revenues Increase Y/Y

Zacks Equity Research
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SolarEdge (SEDG) Q3 Earnings Beat, Revenues Increase Y/Y

SolarEdge's (SEDG) operating income in the third quarter increases 34% from a year ago.

SolarEdge Technologies SEDG reported third-quarter 2018 earnings of 86 cents per share, beating the Zacks Consensus Estimate of 84 cents by 2.4%. The reported number improved 30.3% from the prior-year quarter’s 66 cents.

Revenues

Solar Edge’s revenues of $236.6 million in the quarter surpassed the Zacks Consensus Estimate of $234 million by 1.1%. Revenues also surged 41.7% from the year-ago quarter’s $167 million.

Operational Highlights

During the third quarter of 2018, SolarEdge shipped a total of 1,083 Megawatts (AC) of inverters.

Gross profit was $77.98 million, up approximately 34.3% from $58 million a year ago.

Total operating expenses increased 34.6% year over year to $43.9 million due to higher research and development, sales and marketing, and general and administrative expenses.

Operating income during the quarter was $34 million, up approximately 34% from $25.4 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. Quote

Financial Performance

SolarEdge had $192.9 million of cash and cash equivalents, as of Sep 30, 2018, up from $163.2 million at the end of 2017.

Cash flow from operating activities was $ 34.3 million, up from $33.7 million a year ago.

Long-term liabilities were $147.1 million at the end of the quarter compared with $114.1 million as of Dec 31, 2017.

2018 Guidance

SolarEdge expects to generate revenues in the range of $245-$255 million, for 2018.

The company’s GAAP gross margins are expected to be 30-32%, depending on the effects of recent M&A, while adjusted gross margins are expected to be 32-34%.

Zacks Rank

SolarEdge Technologies currently carries a Zacks Rank #4 (Sell).

First Solar Inc. FSLR reported third-quarter 2018 earnings of 54 cents per share, beating the Zacks Consensus Estimate of 45 cents by 20%. The company carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SunPower Corp. SPWR incurred third-quarter 2018 adjusted loss of 29 cents per share, narrower than the Zacks Consensus Estimate of a loss of 45 cents. The company carries a Zacks Rank #3.

Upcoming Solar Releases

Canadian Solar CSIQ is expected to release third-quarter 2018 results on Nov 15. The company carries a Zacks Rank #3.

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