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SolarEdge (SEDG) Q3 Earnings Beat Estimates, Revenues Up Y/Y
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Shares of SolarEdge Technologies, Inc. (SEDG - Free Report) decreased 2.53% on Nov 5, reflecting negative investor sentiments following the company’s third-quarter 2021 results.
The company reported third-quarter adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.38 by 5.1%. The bottom line improved 19.8% from the prior-year quarter’s $1.21.
Barring one-time adjustments, the company posted GAAP earnings of 96 cents per share compared with 83 cents in the year-ago quarter.
Revenues
SolarEdge’s revenues of $526.4 million in the third quarter missed the Zacks Consensus Estimate of $530 million by 0.6%. However, the top line surged 56% from the year-ago quarter’s $338.1 million.
Revenues from the solar segment were $476.8 million, up 53% from $312.5 million in the prior-year quarter.
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
SolarEdge shipped a total of 1.9 Gigawatts (AC) of inverters in the reported quarter.
Adjusted gross profit totaled $179.1 million, climbing 58.2% from the prior year’s $108.1 million.
Adjusted operating expenses flared up 32.7% year over year to $83.8 million.
Adjusted operating income during the quarter totaled $95.2 million, up 90% from the year-ago quarter’s $50 million.
Financial Performance
SolarEdge had $526.6 million of cash and cash equivalents as of Sep 30, 2021, down from $827.1 million at the end of 2020.
Cash flow from operating activities amounted to $124.6 million for the nine months ended Sep 30, 2021, down from the prior year’s $195.4 million.
Long-term liabilities were $1,009.2 million at the end of the third quarter compared with $915.3 million as of Dec 31, 2020.
Q4 Guidance
For fourth-quarter 2021, SolarEdge expects revenues to be $530-$560 million. The Zacks Consensus Estimate for the same is pegged at $546.9 million, slightly higher than the mid-point of the company’s guided range.
Revenues from solar products in the fourth quarter are projected to be $490-$515 million.
While the company’s non-GAAP gross margin is estimated to be 30-32%, gross margin from the sale of solar products is anticipated to be 31-34%.
Zacks Rank
SolarEdge currently carries a Zacks Rank #4 (Sell).
Enphase Energy (ENPH - Free Report) reported third-quarter adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%.
First Solar Inc.(FSLR - Free Report) reported third-quarter earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents for the June-end quarter.
Sunrun (RUN - Free Report) reported third-quarter adjusted earnings of 11 cents, which outpaced the Zacks Consensus Estimate of 5 cents per share.
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SolarEdge (SEDG) Q3 Earnings Beat Estimates, Revenues Up Y/Y
Shares of SolarEdge Technologies, Inc. (SEDG - Free Report) decreased 2.53% on Nov 5, reflecting negative investor sentiments following the company’s third-quarter 2021 results.
The company reported third-quarter adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of $1.38 by 5.1%. The bottom line improved 19.8% from the prior-year quarter’s $1.21.
Barring one-time adjustments, the company posted GAAP earnings of 96 cents per share compared with 83 cents in the year-ago quarter.
Revenues
SolarEdge’s revenues of $526.4 million in the third quarter missed the Zacks Consensus Estimate of $530 million by 0.6%. However, the top line surged 56% from the year-ago quarter’s $338.1 million.
Revenues from the solar segment were $476.8 million, up 53% from $312.5 million in the prior-year quarter.
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 1.9 Gigawatts (AC) of inverters in the reported quarter.
Adjusted gross profit totaled $179.1 million, climbing 58.2% from the prior year’s $108.1 million.
Adjusted operating expenses flared up 32.7% year over year to $83.8 million.
Adjusted operating income during the quarter totaled $95.2 million, up 90% from the year-ago quarter’s $50 million.
Financial Performance
SolarEdge had $526.6 million of cash and cash equivalents as of Sep 30, 2021, down from $827.1 million at the end of 2020.
Cash flow from operating activities amounted to $124.6 million for the nine months ended Sep 30, 2021, down from the prior year’s $195.4 million.
Long-term liabilities were $1,009.2 million at the end of the third quarter compared with $915.3 million as of Dec 31, 2020.
Q4 Guidance
For fourth-quarter 2021, SolarEdge expects revenues to be $530-$560 million. The Zacks Consensus Estimate for the same is pegged at $546.9 million, slightly higher than the mid-point of the company’s guided range.
Revenues from solar products in the fourth quarter are projected to be $490-$515 million.
While the company’s non-GAAP gross margin is estimated to be 30-32%, gross margin from the sale of solar products is anticipated to be 31-34%.
Zacks Rank
SolarEdge currently carries a Zacks Rank #4 (Sell).
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 adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 47 cents by 27.7%.
First Solar Inc.(FSLR - Free Report) reported third-quarter earnings of 42 cents per share, which missed the Zacks Consensus Estimate of 63 cents for the June-end quarter.
Sunrun (RUN - Free Report) reported third-quarter adjusted earnings of 11 cents, which outpaced the Zacks Consensus Estimate of 5 cents per share.