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SolarEdge (SEDG) Q3 Sales Beat Estimates, Earnings Fall Y/Y
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SolarEdge Technologies, Inc. (SEDG - Free Report) reported third-quarter adjusted earnings of 91 cents per share. The bottom line declined by 37.2% from the prior-year quarter’s earnings of $1.45 per share.
The Zacks Consensus Estimate for third-quarter earnings was pegged at $1.17 per share.
Barring one-time adjustments, the company posted GAAP earnings of 43 cents per share compared with 96 cents in the year-ago quarter.
Revenues
SolarEdge’s revenues of $836.7 million in the third quarter surpassed the Zacks Consensus Estimate of $826 million by 1.3%. The top line surged 59% from the year-ago quarter’s $526.4 million.
Revenues from the solar segment were $788.6 million, up 65% from $476.8 million in the prior-year quarter.
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
SolarEdge shipped a total of 2.7 gigawatts of inverters and 320.7 megawatt-hours of batteries in the reported quarter.
The adjusted gross margin contracted by 670 basis points from the prior-year gross margin of 34% to 27.3%.
Adjusted operating expenses went up 29% year over year to $108.3 million.
The adjusted operating income in the quarter totaled $120.2 million, up 26% from the year-ago quarter’s $95.2 million.
Financial Performance
SolarEdge had $678.3 million of cash and cash equivalents as of Sep 30, 2022, up from $530.1 million as of Dec 31, 2021.
The cash outflow from operating activities amounted to $80 million during the nine months ended Sep 30, 2022 against the cash inflow from operating activities of $124.6 million in the year-ago period.
Total long-term liabilities were $1,156.9 million as of Sep 30, 2022 compared with $1,065.7 million as of Dec 31, 2021.
Q4 Guidance
In the fourth quarter of 2022, SEDG expects revenues in the range of $855-$885 million. The Zacks Consensus Estimate for the same is pegged at $862.1 million, lower than the midpoint of the guided range.
Revenues from the solar segment in the fourth quarter are projected in the range of $810-$840 million.
While the company’s adjusted gross margin is estimated at 27-30%, the gross margin in the solar segment is anticipated at 28-31%.
The company expects the operating profit in the range of $115-$135 million.
Zacks Rank
SolarEdge currently carries a Zacks Rank #4 (Sell).
Enphase Energy, Inc. (ENPH - Free Report) reported third-quarter 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter.
Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million.
First Solar, Inc. (FSLR - Free Report) reported a third-quarter 2022 loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. The bottom line declined significantly from the prior-year quarter’s earnings of 52 cents per share.
First Solar’s third-quarter sales were $628.9 million, which missed the Zacks Consensus Estimate of $770 million by 18.4%. However, the top line improved by 1.3% from the year-ago quarter’s $620.9 million, primarily due to increased module sales.
SunPower Corporation (SPWR - Free Report) reported third-quarter 2022 adjusted earnings of 13 cents per share, which declined 8.3% from the year-ago period.
During the quarter under review, SunPower’s adjusted revenues came in at $469.8 million compared with $281.6 million in the prior-year quarter.
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SolarEdge (SEDG) Q3 Sales Beat Estimates, Earnings Fall Y/Y
SolarEdge Technologies, Inc. (SEDG - Free Report) reported third-quarter adjusted earnings of 91 cents per share. The bottom line declined by 37.2% from the prior-year quarter’s earnings of $1.45 per share.
The Zacks Consensus Estimate for third-quarter earnings was pegged at $1.17 per share.
Barring one-time adjustments, the company posted GAAP earnings of 43 cents per share compared with 96 cents in the year-ago quarter.
Revenues
SolarEdge’s revenues of $836.7 million in the third quarter surpassed the Zacks Consensus Estimate of $826 million by 1.3%. The top line surged 59% from the year-ago quarter’s $526.4 million.
Revenues from the solar segment were $788.6 million, up 65% from $476.8 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 2.7 gigawatts of inverters and 320.7 megawatt-hours of batteries in the reported quarter.
The adjusted gross margin contracted by 670 basis points from the prior-year gross margin of 34% to 27.3%.
Adjusted operating expenses went up 29% year over year to $108.3 million.
The adjusted operating income in the quarter totaled $120.2 million, up 26% from the year-ago quarter’s $95.2 million.
Financial Performance
SolarEdge had $678.3 million of cash and cash equivalents as of Sep 30, 2022, up from $530.1 million as of Dec 31, 2021.
The cash outflow from operating activities amounted to $80 million during the nine months ended Sep 30, 2022 against the cash inflow from operating activities of $124.6 million in the year-ago period.
Total long-term liabilities were $1,156.9 million as of Sep 30, 2022 compared with $1,065.7 million as of Dec 31, 2021.
Q4 Guidance
In the fourth quarter of 2022, SEDG expects revenues in the range of $855-$885 million. The Zacks Consensus Estimate for the same is pegged at $862.1 million, lower than the midpoint of the guided range.
Revenues from the solar segment in the fourth quarter are projected in the range of $810-$840 million.
While the company’s adjusted gross margin is estimated at 27-30%, the gross margin in the solar segment is anticipated at 28-31%.
The company expects the operating profit in the range of $115-$135 million.
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, Inc. (ENPH - Free Report) reported third-quarter 2022 adjusted earnings of $1.25 per share, which improved by a solid 108.3% from the 60 cents reported in the prior-year quarter.
Enphase Energy’s third-quarter revenues of $634.7 million beat the Zacks Consensus Estimate of $617 million by 2.9%. The top line soared 80.6% from the year-ago quarter’s $351.5 million.
First Solar, Inc. (FSLR - Free Report) reported a third-quarter 2022 loss of 46 cents per share, wider than the Zacks Consensus Estimate of a loss of 23 cents. The bottom line declined significantly from the prior-year quarter’s earnings of 52 cents per share.
First Solar’s third-quarter sales were $628.9 million, which missed the Zacks Consensus Estimate of $770 million by 18.4%. However, the top line improved by 1.3% from the year-ago quarter’s $620.9 million, primarily due to increased module sales.
SunPower Corporation (SPWR - Free Report) reported third-quarter 2022 adjusted earnings of 13 cents per share, which declined 8.3% from the year-ago period.
During the quarter under review, SunPower’s adjusted revenues came in at $469.8 million compared with $281.6 million in the prior-year quarter.