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

FSLR SPWR ENPH SEDG

Shares of SolarEdge Technologies, Inc. (SEDG - Free Report) appreciated 16.3% to reach $299.81 per share on Aug 3, reflecting investors' optimism following its second-quarter 2021 results.

The company reported second-quarter adjusted earnings of $1.28 per share, which surpassed the Zacks Consensus Estimate of $1.12. The bottom line, moreover, surged 32% from the prior-year quarter’s 97 cents.

Barring one-time adjustments, the company posted GAAP earnings of 82 cents per share compared with the 70 cents witnessed in the year-ago quarter.

Revenues

SolarEdge’s revenues of $480.1 million in the second quarter topped the Zacks Consensus Estimate of $457 million. The top line also jumped 44.7% from the year-ago quarter’s $331.9 million on solid commercial shipments.

Revenues from the solar segment were $431.5 million, up 39% from the $310.1 million seen in the same quarter, last year.

Operational Highlights

SolarEdge shipped a total of 1.64 Gigawatts (AC) of inverters in the reported quarter.

Gross profit totaled $156.2 million, soaring 51.6% from the prior year’s $103 million.

Total operating expenses flared up 37.8% year over year to $100.6 million. This uptick can be attributed to higher research & development, sales & marketing and general & administrative expenses.

Operating income during the quarter totaled $55.6 million, up 85.4% from the year-ago quarter’s $30 million.

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

Financial Performance

SolarEdge had $524.1 million of cash and cash equivalents as of Jun 30, 2021, down from $827.1 million at the end of 2020.

Cash flow from operating activities amounted to $62.8 million at the end of second-quarter 2021, down from the prior year’s $167.1 million.

Long-term liabilities were $986.9 million at the end of the second quarter compared with $915.3 million as of Dec 31, 2020.

Q3 Guidance

For third-quarter 2021, SolarEdge expects revenues of $520-$540 million. The Zacks Consensus Estimate for the same is pegged at $510.1 million, lower than the company’s guided range.

Additionally, revenues from solar products in the third quarter are projected to be $460-$480 million.

While the company’s non-GAAP gross margin is estimated to be 32-34%, gross margin from the sale of solar products is anticipated to be 35-37%.

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 (ENPH - Free Report) delivered second-quarter adjusted earnings of 53 cents per share, which surpassed the Zacks Consensus Estimate of 42 cents.

First Solar Inc. (FSLR - Free Report) reported adjusted earnings of 77 cents per share, which outpaced the Zacks Consensus Estimate of 60 cents for the June-end quarter.

SunPower Corp. (SPWR - Free Report) posted adjusted earnings of 6 cents per share for the April-June quarter, which beat the Zacks Consensus Estimate of 3 cents.

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