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SolarEdge (SEDG) Set to Post Q4 Earnings: What's in Store?
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SolarEdge Technologies, Inc. (SEDG - Free Report) is slated to report fourth-quarter 2021 results on Feb 15 after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 5.07%. Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 7.26%.
Factors to Note
In the last few quarters, the company has been witnessing a ramp-up in demand for solar products across all business scopes and geographies, which is expected to have continued to favorably impact its fourth-quarter revenues. The strong lineup of orders for nameplate inverters is also expected to have added impetus to its fourth-quarter topline.
The ramp-up in production of the SolarEdge energy bank residential battery, with installations already witnessed in the United States, Italy, Germany, England, Belgium along with first deliveries in Australia during the third quarter, is likely to have continued to positively impact its quarterly revenues in the to-be-reported quarter as well. An increased shipment of the Energy Hub Inverter is also likely to have boosted its fourth-quarter results.
Additionally, an increased shipment of the fourth-generation optimizer is expected to have bolstered SEDG’s topline.
However, at the beginning of the fourth quarter, the company’s Vietnam manufacturing facility had been working at a reduced capacity due to lockdowns and related temporary shutdowns. Although the production rate is projected to have hit its full capacity by mid-November, with the Vietnam factory providing the vast majority of SolarEdge’s nontariff shipments to the U.S. market, the reduced capacity even for a month might have hampered the overall quarterly product supply for the stock. This is likely to have hurt its quarterly revenues.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $548.7 million, suggesting growth of 53.2% from the year-ago quarter’s reported number.
From the cost perspective, the company has been experiencing higher logistics costs and tariffs and some component and raw material price increases. Such cost increases are expected to have partially dampened SolarEdge’s earnings in the soon-to-be-reported quarter.
Moreover, the cost of expedited shipments along with tariffs from shipping more China-made products to the United States for compensating the reduced capacity at the Vietnam factory may have hurt its overall bottomline.
However, strong demand for its products and increased shipments must have outweighed the negative cost impact and aided its margins, thereby boosting earnings in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earningsis pegged at $1.29 per share, indicating an improvement of 31.6% from the prior-year reported figure.
SolarEdge Technologies, Inc. Price and EPS Surprise
Our proven model does not conclusively predict an earnings beat for SEDG this time. 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. However, that is not the case here.
SolarEdge has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks to Consider
Here is one solar player that you may want to consider, as it has the right combination of elements to post an earnings beat this season:
FTC Solar boasts a long-term earnings growth rate of 40%. The Zacks Consensus Estimate for FTCI’s fourth-quarter sales is pegged at $75.9 million.
Upcoming Releases
Here are two solar players who are yet to release their Q4 numbers:
First Solar (FSLR - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #5 . The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $1.07, implies a year-over-year slip of 0.9%.
First Solar boasts a long-term earnings growth rate of 7.4%. FSLR has a four-quarter earnings surprise of 19.01%.
SunPower (SPWR - Free Report) has an Earnings ESP of -145.46% and a Zacks Rank #4. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at 4 cents, implies a year-over-year decline of 71.4%.
SunPower boasts a long-term earnings growth rate of 15.6%. SPWR has a four-quarter earnings surprise of 113.33%.
Image: Bigstock
SolarEdge (SEDG) Set to Post Q4 Earnings: What's in Store?
SolarEdge Technologies, Inc. (SEDG - Free Report) is slated to report fourth-quarter 2021 results on Feb 15 after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 5.07%. Its bottom line outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 7.26%.
Factors to Note
In the last few quarters, the company has been witnessing a ramp-up in demand for solar products across all business scopes and geographies, which is expected to have continued to favorably impact its fourth-quarter revenues. The strong lineup of orders for nameplate inverters is also expected to have added impetus to its fourth-quarter topline.
The ramp-up in production of the SolarEdge energy bank residential battery, with installations already witnessed in the United States, Italy, Germany, England, Belgium along with first deliveries in Australia during the third quarter, is likely to have continued to positively impact its quarterly revenues in the to-be-reported quarter as well. An increased shipment of the Energy Hub Inverter is also likely to have boosted its fourth-quarter results.
Additionally, an increased shipment of the fourth-generation optimizer is expected to have bolstered SEDG’s topline.
However, at the beginning of the fourth quarter, the company’s Vietnam manufacturing facility had been working at a reduced capacity due to lockdowns and related temporary shutdowns. Although the production rate is projected to have hit its full capacity by mid-November, with the Vietnam factory providing the vast majority of SolarEdge’s nontariff shipments to the U.S. market, the reduced capacity even for a month might have hampered the overall quarterly product supply for the stock. This is likely to have hurt its quarterly revenues.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $548.7 million, suggesting growth of 53.2% from the year-ago quarter’s reported number.
From the cost perspective, the company has been experiencing higher logistics costs and tariffs and some component and raw material price increases. Such cost increases are expected to have partially dampened SolarEdge’s earnings in the soon-to-be-reported quarter.
Moreover, the cost of expedited shipments along with tariffs from shipping more China-made products to the United States for compensating the reduced capacity at the Vietnam factory may have hurt its overall bottomline.
However, strong demand for its products and increased shipments must have outweighed the negative cost impact and aided its margins, thereby boosting earnings in the to-be-reported quarter.
The Zacks Consensus Estimate for fourth-quarter earningsis pegged at $1.29 per share, indicating an improvement of 31.6% from the prior-year reported figure.
SolarEdge Technologies, Inc. Price and EPS Surprise
SolarEdge Technologies, Inc. price-eps-surprise | SolarEdge Technologies, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for SEDG this time. 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. However, that is not the case here.
SolarEdge has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell, before they’re reported, with our Earnings ESP Filter.
Stocks to Consider
Here is one solar player that you may want to consider, as it has the right combination of elements to post an earnings beat this season:
FTC Solar, Inc (FTCI - Free Report) has an Earnings ESP of +19.36% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
FTC Solar boasts a long-term earnings growth rate of 40%. The Zacks Consensus Estimate for FTCI’s fourth-quarter sales is pegged at $75.9 million.
Upcoming Releases
Here are two solar players who are yet to release their Q4 numbers:
First Solar (FSLR - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #5 . The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at $1.07, implies a year-over-year slip of 0.9%.
First Solar boasts a long-term earnings growth rate of 7.4%. FSLR has a four-quarter earnings surprise of 19.01%.
SunPower (SPWR - Free Report) has an Earnings ESP of -145.46% and a Zacks Rank #4. The Zacks Consensus Estimate for its fourth-quarter earnings, pegged at 4 cents, implies a year-over-year decline of 71.4%.
SunPower boasts a long-term earnings growth rate of 15.6%. SPWR has a four-quarter earnings surprise of 113.33%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.