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SolarEdge (SEDG) Q3 Earnings Top Estimates, Revenues Down Y/Y

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SolarEdge Technologies, Inc. (SEDG - Free Report) reported third-quarter 2020 adjusted earnings of $1.21 per share, which surpassed the Zacks Consensus Estimate of 82 cents by 47.6%. The bottom line, moreover, rose 24.7% from 97 cents in the prior-year quarter.

Barring one-time adjustments, the company posted GAAP earnings of 83 cents per share compared with 81 cents in the year-ago quarter.

Revenues

SolarEdge’s revenues of $338.1 million in the third quarter missed the Zacks Consensus Estimate of $342 million by 1.1%. The top line also declined 17.7% from the year-ago quarter’s $410.6 million.

Operational Highlights

SolarEdge shipped a total of 1.45 Gigawatts (AC) of inverters in the reported quarter.

Gross profit totaled $108.1 million, declining 22.4% from $139.3 million a year ago.

Total operating expenses rose 6% year over year to $77.7 million. The increase can be attributed to higher research & development and general & administrative expenses.

Operating income during the quarter totaled $30.4 million, down 54% from $66 million in the year-ago quarter.

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

Financial Performance

SolarEdge had $1,048.1 million of cash and cash equivalents as of Sep 30, 2020, up from $233.9 million at the end of 2019.

Cash flow from operating activities amounted to $195.4 million at the end of third-quarter 2020, up from $175.9 million a year ago.

Long-term liabilities were $863.7 million at the end of the third quarter compared with $246.2 million as of Dec 31, 2019.

Q4 Guidance

For fourth-quarter 2020, SolarEdge expects revenues of $345-$365 million compared with the previous guidance range of $325-$350 million. The Zacks Consensus Estimate for the same is pegged at $400.8 million, higher than the company’s guidance range.

Additionally, revenues from solar products in the third quarter are projected to be $320-$335 million.

While the company’s non-GAAP gross margin is expected to be 32-34%, gross margin from the sale of solar products is anticipated to be 34-36%.

Zacks Rank

SolarEdge currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Solar Releases

Enphase Energy (ENPH - Free Report) reported third-quarter 2020 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 25%.

First Solar (FSLR - Free Report) reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.

SunPower Corp. incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.

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