SolarEdge (SEDG) Q3 Earnings Miss Estimates, Revenues Fall Y/Y
SolarEdge Technologies, Inc. SEDG reported third-quarter 2023 adjusted loss of 55 cents per share, which missed the Zacks Consensus Estimate of earnings of 68 cents. The bottom line also deteriorated from the prior-year quarter’s reported earnings of 91 cents per share.
Barring one-time adjustments, the company recorded a GAAP loss of $1.08 per share against earnings of 43 cents in the year-ago period.
Revenues
The company’s quarterly revenues of $725.3 million missed the Zacks Consensus Estimate of $766.7 million by 5.4%. The top line also declined 13% from the year-ago quarter’s figure of $836.7 million.
Revenues from the solar segment totaled $676.4 million, down 14% from $788.6 million registered in the prior-year period.
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 3.8 gigawatts of inverters and 121 megawatt-hours of batteries in the reported quarter.
The adjusted gross margin contracted 650 basis points to 20.8% from the prior-year figure of 27.3%.
Adjusted operating expenses went up 18% year over year to $128 million.
The adjusted operating income totaled $23.1 million, down 81% from the year-ago quarter’s figure of $120.2 million.
Financial Performance
SolarEdge had $551.1 million in cash and cash equivalents as of Sep 30, 2023, compared with $783.1 million as of Dec 31, 2022.
The cash outflow from operating activities amounted to $40.2 million compared with $80 million in the year-ago period.
Total long-term liabilities were $1,287.5 million as of Sep 30, 2023, compared with $1,199.9 million as of Dec 31, 2022.
Q4 Guidance
SEDG expects revenues in the range of $300-$350 million for the fourth quarter of 2023. The Zacks Consensus Estimate for the same is pegged at $1.05 billion, higher than the midpoint of the guided range.
Revenues from the solar segment are projected in the range of $275-$320 million for the same time frame.
While the company’s adjusted gross margin is estimated in the range of 5-8%, the same for the solar segment is anticipated in the band of 7-10%.
SEDG expects adjusted operating expenses in the $126-$130 million range.
Zacks Rank
SolarEdge currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
Enphase Energy, Inc. ENPH reported third-quarter 2023 adjusted earnings of $1.02 per share, which highlights an 18.4% decline from $1.25 reported in the prior-year quarter. The bottom line came in line with the Zacks Consensus Estimate.
Enphase Energy’s third-quarter revenues of $551.1 million missed the Zacks Consensus Estimate of $562 million by 1.9%. The top line also declined 13.2% from the prior-year quarter’s reported figure of $634.7 million.
JinkoSolar Holding Co. Ltd.’s JKS reported third-quarter 2023 earnings per American Depositary Share (ADS) of $2.59, which beat the Zacks Consensus Estimate of $1.96 by 32.1%. The company reported earnings per ADS of 59 cents in the year-ago quarter.
In the quarter under review, JinkoSolar’s total revenues of $4,363.2 million surpassed the Zacks Consensus Estimate of $4,224 million by 3.3%. The top line surged 63.1% on a year-over-year basis, driven by an increase in solar module shipments.
First Solar FSLR reported third-quarter 2023 earnings of $2.50 per share against the prior-year quarter’s reported loss of 46 cents per share. The bottom line beat the Zacks Consensus Estimate of $2.09 by 19.6%.
First Solar’s third-quarter net sales were $801.1 million, which lagged the Zacks Consensus Estimate of $901 million by 11.1%. However, the top line improved 27.4% from the year-ago quarter’s figure of $628.9 million.
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JinkoSolar Holding Company Limited (JKS) : Free Stock Analysis Report
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SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
