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SolarEdge (SEDG) Q2 Earnings Beat Estimates, Revenues Up Y/Y

SolarEdge Technologies, Inc. SEDG reported second-quarter 2020 adjusted earnings of 97 cents per share, which surpassed the Zacks Consensus Estimate of 69 cents by 40.6%. The bottom line, moreover, rose 3.2% from 94 cents in the prior-year quarter.

Barring one-time adjustments, the company posted GAAP earnings of 70cents per share compared with 66 cents in the year-ago quarter.

Revenues

SolarEdge’s revenues of $331.9 million in the second quarter surpassed the Zacks Consensus Estimate of $322 million by 3.2%. The top line also improved 2.1% from the year-ago quarter’s $325 million on solid commercial shipments.

Operational Highlights

SolarEdge shipped a total of 1.44 Gigawatts (AC) of inverters in the reported quarter.

Gross profit totaled $107.6 million, declining 7.2% from $115.9 million a year ago.

Total operating expenses improved 11.2% year over year to $61.1 million. The uptick can be attributed to higher research & development and general & administrative expenses.

Operating income during the quarter totaled $46.6 million, down23.7% from $61 million in the year-ago quarter.

Financial Performance

SolarEdge had $428.4 million of cash and cash equivalents as of Jun 30, 2020, up from $233.9 million at the end of 2019.

Cash flow from operating activities amounted to $59.3 million at the end of second-quarter 2020, up from $50.8 million a year ago.

Long-term liabilities were $276 million at the end of the second quarter compared with $246.2 million as of Dec 31, 2019.

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

SolarEdge Technologies, Inc. price-consensus-eps-surprise-chart | SolarEdge Technologies, Inc. Quote

Q3 Guidance

For third-quarter 2020, SolarEdge expects revenues of $325-$350 million. The Zacks Consensus Estimate for the same is pegged at $331.1 million, lower than the midpoint of the company’s guidance range.

Additionally, revenues from solar products in the third quarter are projected to be $305-$325 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 33-35%.

Zacks Rank

SolarEdge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Upcoming Solar Releases

Canadian Solar CSIQ carries a Zacks Rank of 2, at present, and is scheduled to post second-quarter 2020 results on Aug 7.

First Solar FSLR currently has a Zacks Rank #3 and is set to release second-quarter 2020 results on Aug 6.

Vivint Solar VSLR is presently a Zacks #3Ranked stock and scheduled to post second-quarter 2020 results on Aug 5.

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SolarEdge Technologies, Inc. (SEDG): Free Stock Analysis Report
 
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