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SolarEdge (SEDG) Q4 Earnings Miss Estimates, Revenues Rise
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Shares of SolarEdge Technologies, Inc. (SEDG - Free Report) rose 1.8% following its fourth-quarter and full-year 2021 results, reflecting investors’ optimism about the outcome.
The company reported fourth-quarter adjusted earnings of $1.10 per share, which lagged the Zacks Consensus Estimate of $1.29 by 14.7%. However, the bottom line improved 12.2% from the prior-year quarter’s earnings of 98 cents per share.
Barring one-time adjustments, the company posted GAAP earnings of 74 cents per share compared with 33 cents in the year-ago quarter.
SolarEdge reported earnings per share of $4.81 for full-year 2021, which increased 17% from $4.11 reported in 2020.
Revenues
SolarEdge’s revenues of $551.9 million in the fourth quarter surpassed the Zacks Consensus Estimate of $549 million by 0.6%. The top line surged 54% from the year-ago quarter’s $358.1 million.
Revenues from the solar segment were $502.7 million, up 54% from $327.1 million in the prior-year quarter.
In 2021, SEDG generated sales worth $1.96 billion, up 34.6% from the year-ago figure.
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
SolarEdge shipped a total of 1.92 gigawatts (AC) of inverters in the reported quarter.
Adjusted gross margin contracted 220 basis points from the prior-year gross margin of 32.5% to 30.3%.
Adjusted operating expenses went up 29% year over year to $94.1 million.
Adjusted operating income in the quarter totaled $72.9 million, up 68% from the year-ago quarter’s $43.5 million.
Financial Performance
SolarEdge had $530.1 million of cash and cash equivalents at the end of 2021, down from $827.1 million at the end of 2020.
Cash flow from operating activities amounted to $214.1 million at the end of 2021, down from the prior year’s $222.7 million.
Total long-term liabilities were $1,056.8 million at the end of 2021 compared with $915.3 million as of Dec 31, 2020.
Q1 Guidance
For the first quarter of 2022, SEDG expects revenues in the range of $615-$645 million. The Zacks Consensus Estimate for the same is pegged at $593.5 million, which is lower than the company’s guided range.
Revenues from solar products in the first quarter are projected in the range of $575-$595 million.
While the company’s adjusted gross margin is estimated at 28-30%, the gross margin from the sale of solar products is anticipated at 30-32%.
Zacks Rank
SolarEdge currently carries a Zacks Rank #4 (Sell).
Enphase Energy (ENPH - Free Report) reported fourth-quarter 2021 adjusted earnings of 73 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents by 28.1%. The bottom line improved 43.1% from 51 cents per share reported in the prior-year quarter.
Enphase Energy’s fourth-quarter revenues of $412.7 million beat the Zacks Consensus Estimate of $403 million by 2.4%. ENPH’s top line soared 55.8% from the year-ago quarter’s $264.8 million, driven by strong demand for its microinverter systems.
SunPower (SPWR - Free Report) reported a fourth-quarter 2021 loss of 7 cents per share, which lagged the Zacks Consensus Estimate of earnings of 4 cents. The bottom line significantly declined from earnings of 14 cents per share reported in the prior-year quarter.
SunPower’s total revenues for the quarter came in at $384.2 million, which declined 13.8% from the prior-year quarter. SPWR’s top line also lagged the Zacks Consensus Estimate of $379.1 million by 1.3%.
Upcoming Solar Release
Sunrun (RUN - Free Report) is slated to report fourth-quarter 2021 results on Feb 17. In the trailing four quarters, Sunrun delivered a negative earnings surprise of 233.10%, on average.
The Zacks Consensus Estimate for Sunrun’s fourth-quarter revenues is pegged at $392 million, suggesting growth of 22.4% from the year-ago reported figure. The Zacks Consensus Estimate for RUN’s fourth-quarter earningssuggests significant growth of 266.7% from the year-ago quarter’s figure of 10 cents per share.
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SolarEdge (SEDG) Q4 Earnings Miss Estimates, Revenues Rise
Shares of SolarEdge Technologies, Inc. (SEDG - Free Report) rose 1.8% following its fourth-quarter and full-year 2021 results, reflecting investors’ optimism about the outcome.
The company reported fourth-quarter adjusted earnings of $1.10 per share, which lagged the Zacks Consensus Estimate of $1.29 by 14.7%. However, the bottom line improved 12.2% from the prior-year quarter’s earnings of 98 cents per share.
Barring one-time adjustments, the company posted GAAP earnings of 74 cents per share compared with 33 cents in the year-ago quarter.
SolarEdge reported earnings per share of $4.81 for full-year 2021, which increased 17% from $4.11 reported in 2020.
Revenues
SolarEdge’s revenues of $551.9 million in the fourth quarter surpassed the Zacks Consensus Estimate of $549 million by 0.6%. The top line surged 54% from the year-ago quarter’s $358.1 million.
Revenues from the solar segment were $502.7 million, up 54% from $327.1 million in the prior-year quarter.
In 2021, SEDG generated sales worth $1.96 billion, up 34.6% from the year-ago figure.
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 1.92 gigawatts (AC) of inverters in the reported quarter.
Adjusted gross margin contracted 220 basis points from the prior-year gross margin of 32.5% to 30.3%.
Adjusted operating expenses went up 29% year over year to $94.1 million.
Adjusted operating income in the quarter totaled $72.9 million, up 68% from the year-ago quarter’s $43.5 million.
Financial Performance
SolarEdge had $530.1 million of cash and cash equivalents at the end of 2021, down from $827.1 million at the end of 2020.
Cash flow from operating activities amounted to $214.1 million at the end of 2021, down from the prior year’s $222.7 million.
Total long-term liabilities were $1,056.8 million at the end of 2021 compared with $915.3 million as of Dec 31, 2020.
Q1 Guidance
For the first quarter of 2022, SEDG expects revenues in the range of $615-$645 million. The Zacks Consensus Estimate for the same is pegged at $593.5 million, which is lower than the company’s guided range.
Revenues from solar products in the first quarter are projected in the range of $575-$595 million.
While the company’s adjusted gross margin is estimated at 28-30%, the gross margin from the sale of solar products is anticipated at 30-32%.
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 fourth-quarter 2021 adjusted earnings of 73 cents per share, which surpassed the Zacks Consensus Estimate of 57 cents by 28.1%. The bottom line improved 43.1% from 51 cents per share reported in the prior-year quarter.
Enphase Energy’s fourth-quarter revenues of $412.7 million beat the Zacks Consensus Estimate of $403 million by 2.4%. ENPH’s top line soared 55.8% from the year-ago quarter’s $264.8 million, driven by strong demand for its microinverter systems.
SunPower (SPWR - Free Report) reported a fourth-quarter 2021 loss of 7 cents per share, which lagged the Zacks Consensus Estimate of earnings of 4 cents. The bottom line significantly declined from earnings of 14 cents per share reported in the prior-year quarter.
SunPower’s total revenues for the quarter came in at $384.2 million, which declined 13.8% from the prior-year quarter. SPWR’s top line also lagged the Zacks Consensus Estimate of $379.1 million by 1.3%.
Upcoming Solar Release
Sunrun (RUN - Free Report) is slated to report fourth-quarter 2021 results on Feb 17. In the trailing four quarters, Sunrun delivered a negative earnings surprise of 233.10%, on average.
The Zacks Consensus Estimate for Sunrun’s fourth-quarter revenues is pegged at $392 million, suggesting growth of 22.4% from the year-ago reported figure. The Zacks Consensus Estimate for RUN’s fourth-quarter earningssuggests significant growth of 266.7% from the year-ago quarter’s figure of 10 cents per share.