Shares of SolarEdge Technologies, Inc. (SEDG - Free Report) decline 16% to reach $218.57 on May 3, reflecting investors’ skepticism following its first-quarter results.
It reported first-quarter 2021 adjusted earnings of 98 cents per share, which missed the Zacks Consensus Estimate of $1.01 by 3%. The bottom-line figure, however, improved 3% from 95 cents reported in the prior-year quarter.
Barring one-time adjustments, the company posted GAAP earnings of 55 cents per share compared with 81 cents in the year-ago quarter.
Revenues
SolarEdge’s revenues of $405.5 million in the first quarter surpassed the Zacks Consensus Estimate of $396 million by 2.4%. The top line, however, declined 6% from the year-ago quarter’s $431.2 million.
Operational Highlights
SolarEdge shipped a total of 1.69 Gigawatts (AC) of inverters in the reported quarter.
Gross profit totaled $140 million in the first quarter of 2021.
Total operating expenses rose 32.8% year over year to $95.9 million. The uptick in expenses can be attributed to higher research and development, sales and marketing, and general and administrative expenses.
Operating income during the quarter totaled $44.1 million, down from $67.8 million in the year-ago quarter.
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
Financial Performance
SolarEdge had $685.1 million of cash and cash equivalents as of Mar 31, 2021, down from $827.1 million at the end of 2020.
Cash flow from operating activities amounted to $24.1 million at the end of first-quarter 2021, down from $107.7 million a year ago.
Long-term liabilities were $966.9 million at the end of the first quarter compared with $915.2 million as of Dec 31, 2020.
Guidance
For second-quarter 2021, SolarEdge expects to generate revenues of $445-$465 million. The Zacks Consensus Estimate for the same is pegged at $458.2 million, which lies above the midpoint of the company’s guided range.
Additionally, revenues from solar products during the second quarter are projected in the range of $405-$420 million.
While the company’s GAAP gross margins are expected to be 32-34%, gross margins from the sale of solar products are anticipated to be 36-38%.
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.
Recent Solar Releases
Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents by 36.6%.
First Solar Inc. (FSLR - Free Report) reported first-quarter 2021 adjusted earnings of $1.96 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 96%.
Sunpower Corp. (SPWR - Free Report) reported first-quarter 2021 adjusted earnings of 5 cents per share, which surpassed the Zacks Consensus Estimate of break-even.
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Shares of SolarEdge Technologies, Inc. (SEDG - Free Report) decline 16% to reach $218.57 on May 3, reflecting investors’ skepticism following its first-quarter results.
It reported first-quarter 2021 adjusted earnings of 98 cents per share, which missed the Zacks Consensus Estimate of $1.01 by 3%. The bottom-line figure, however, improved 3% from 95 cents reported in the prior-year quarter.
Barring one-time adjustments, the company posted GAAP earnings of 55 cents per share compared with 81 cents in the year-ago quarter.
Revenues
SolarEdge’s revenues of $405.5 million in the first quarter surpassed the Zacks Consensus Estimate of $396 million by 2.4%. The top line, however, declined 6% from the year-ago quarter’s $431.2 million.
Operational Highlights
SolarEdge shipped a total of 1.69 Gigawatts (AC) of inverters in the reported quarter.
Gross profit totaled $140 million in the first quarter of 2021.
Total operating expenses rose 32.8% year over year to $95.9 million. The uptick in expenses can be attributed to higher research and development, sales and marketing, and general and administrative expenses.
Operating income during the quarter totaled $44.1 million, down from $67.8 million in the year-ago quarter.
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
Financial Performance
SolarEdge had $685.1 million of cash and cash equivalents as of Mar 31, 2021, down from $827.1 million at the end of 2020.
Cash flow from operating activities amounted to $24.1 million at the end of first-quarter 2021, down from $107.7 million a year ago.
Long-term liabilities were $966.9 million at the end of the first quarter compared with $915.2 million as of Dec 31, 2020.
Guidance
For second-quarter 2021, SolarEdge expects to generate revenues of $445-$465 million. The Zacks Consensus Estimate for the same is pegged at $458.2 million, which lies above the midpoint of the company’s guided range.
Additionally, revenues from solar products during the second quarter are projected in the range of $405-$420 million.
While the company’s GAAP gross margins are expected to be 32-34%, gross margins from the sale of solar products are anticipated to be 36-38%.
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.
Recent Solar Releases
Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents by 36.6%.
First Solar Inc. (FSLR - Free Report) reported first-quarter 2021 adjusted earnings of $1.96 per share, which surpassed the Zacks Consensus Estimate of $1.00 by 96%.
Sunpower Corp. (SPWR - Free Report) reported first-quarter 2021 adjusted earnings of 5 cents per share, which surpassed the Zacks Consensus Estimate of break-even.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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