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SolarEdge (SEDG) to Report Q4 Earnings: What's in the Cards?
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SolarEdge Technologies, Inc. (SEDG - Free Report) is set to report fourth-quarter 2020 results on Feb 16, after market close. In the last reported quarter, the company delivered an earnings surprise of 47.56%.
Moreover, the bottom line outpaced the Zacks Consensus Estimate in three of the trailing four quarters, while missing in the remaining one, the average surprise being 25.22%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
During the third-quarter earnings call, SolarEdge Technologies announced its anticipation to witness approximately 50% growth in residential sales in North America in the fourth quarter, led by higher sell-through from vendors. Furthermore, per its earlier announced plans, the company might have delivered an additional 100-200 powertrain kits in the fourth quarter.
However, the company is expected to have witnessed a sales decline in the European region, led by the usual seasonal effects that take place primarily in the fourth quarter. Moreover, courtesy of the novel coronavirus outbreak, SolarEdge has been experiencing a significant decline in installation rates, particularly in the United States, in recent times. Per the company’s expectations, commercial sales in the United States will be toward the lower-end during the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $354.6 million, indicating a 15.2% decline from the figure reported in the year-ago quarter.
During the third-quarter earnings call, the company revealed that costs related to the production ramp up in its Sella 1 factory will continue until the second quarter of 2021, as it continues to increase production volumes. So, costs associated with production ramp up along with an anticipated revenue decline might have weighed on the bottom line in the fourth quarter.
In line with this, the Zacks Consensus Estimate for fourth-quarter earnings is pegged at 87 cents per share, suggesting a deterioration of 47.3% from the year-earlier quarter’s $1.65.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for SolarEdge Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.
Earnings ESP: The company’s Earnings ESP is -10.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
SunPower (SPWR - Free Report) is scheduled to post fourth-quarter 2020 results on Feb 17.
Sunrun (RUN - Free Report) is set to release fourth-quarter 2020 results on Feb 25.
A Recent Solar Release
Enphase Energy (ENPH - Free Report) reported fourth-quarter 2020 adjusted earnings of 51 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents by 27.5%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
SolarEdge (SEDG) to Report Q4 Earnings: What's in the Cards?
SolarEdge Technologies, Inc. (SEDG - Free Report) is set to report fourth-quarter 2020 results on Feb 16, after market close. In the last reported quarter, the company delivered an earnings surprise of 47.56%.
Moreover, the bottom line outpaced the Zacks Consensus Estimate in three of the trailing four quarters, while missing in the remaining one, the average surprise being 25.22%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
During the third-quarter earnings call, SolarEdge Technologies announced its anticipation to witness approximately 50% growth in residential sales in North America in the fourth quarter, led by higher sell-through from vendors. Furthermore, per its earlier announced plans, the company might have delivered an additional 100-200 powertrain kits in the fourth quarter.
However, the company is expected to have witnessed a sales decline in the European region, led by the usual seasonal effects that take place primarily in the fourth quarter. Moreover, courtesy of the novel coronavirus outbreak, SolarEdge has been experiencing a significant decline in installation rates, particularly in the United States, in recent times. Per the company’s expectations, commercial sales in the United States will be toward the lower-end during the fourth quarter.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $354.6 million, indicating a 15.2% decline from the figure reported in the year-ago quarter.
During the third-quarter earnings call, the company revealed that costs related to the production ramp up in its Sella 1 factory will continue until the second quarter of 2021, as it continues to increase production volumes. So, costs associated with production ramp up along with an anticipated revenue decline might have weighed on the bottom line in the fourth quarter.
In line with this, the Zacks Consensus Estimate for fourth-quarter earnings is pegged at 87 cents per share, suggesting a deterioration of 47.3% from the year-earlier quarter’s $1.65.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for SolarEdge Technologies this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But this is not the case here.
Earnings ESP: The company’s Earnings ESP is -10.47%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SolarEdge Technologies currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
SolarEdge Technologies, Inc. Price and EPS Surprise
SolarEdge Technologies, Inc. price-eps-surprise | SolarEdge Technologies, Inc. Quote
Upcoming Solar Releases
SunPower (SPWR - Free Report) is scheduled to post fourth-quarter 2020 results on Feb 17.
Sunrun (RUN - Free Report) is set to release fourth-quarter 2020 results on Feb 25.
A Recent Solar Release
Enphase Energy (ENPH - Free Report) reported fourth-quarter 2020 adjusted earnings of 51 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents by 27.5%.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>