SolarEdge Technologies, Inc. SEDG is scheduled to report its third-quarter 2023 results on Nov 1 after the closing bell.
In the last reported quarter, the company delivered an earnings surprise of 2.75%. SolarEdge has a trailing four-quarter earnings surprise of 22.90%, on average.
Factors to Note
Strong revenues from the solar business, backed by increased global sales of residential batteries, power optimizers, inverters and trackers, are likely to have benefited SolarEdge’s sales in the third quarter.
Region-wise, Europe is likely to have contributed significantly to SolarEdge’s third-quarter revenues as installation rates continue to be high in the residential and commercial markets in the region. However, the lower shipment of batteries in Europe might have adversely impacted overall the top line. Also, macroeconomic factors in the United States and the new net metering 3.0 regime in California are likely to have dampened revenues in the third quarter.
The Zacks Consensus Estimate for SEDG’s third-quarter revenues is pegged at $766.7 million, suggesting a decline of 8.4% from the year-ago quarter.
Sales from newly acquired Hark Systems, characterized by very high gross margins, are likely to have contributed to the overall margin performance in the third quarter, thus boosting the overall bottom line. However, a weak top line and higher operating expenses may have dampened its overall bottom line in the third quarter of 2023.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 68 cents per share. This indicates a decline of 25.3% 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 SolarEdge 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, which is not the case here.
Earnings ESP: SolarEdge’s Earnings ESP is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: SolarEdge currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are three companies you may want to consider from the same sector as these have the right combination of elements to post an earnings beat this season:
ConocoPhillips COP currently has an Earnings ESP of +0.50% and a Zacks Rank #2. The Zacks Consensus Estimate for ConocoPhillips’ third-quarter sales is pegged at $14.59 billion.
Estimates for the company’s third-quarter earnings are pegged at $2.04 per share. COP has a four-quarter earnings surprise of 4.47%, on average.
Constellation Energy Corporation CEG currently has an Earnings ESP of +1.36% and a Zacks Rank #1. The Zacks Consensus Estimate for Constellation’s third-quarter sales implies an improvement of 12.5% from the prior-year reported figure.
CEG delivered an earnings surprise of 228.21% in the last reported quarter. Third-quarter earnings estimates, pegged at $1.35 per share, imply a significant improvement from the year-ago quarter’s tally.
DT Midstream, Inc. DTM currently has an Earnings ESP of +2.45% and a Zacks Rank #3. The Zacks Consensus Estimate for its third-quarter sales is pegged at $226.8 million, suggesting a decline of 3.5% from the year-ago quarter’s tally.
Estimates for DTM’s third-quarter bottom line are pegged at 90 cents per share. The company delivered an earnings surprise of 5.68% in the last reported quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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