SolarEdge Technologies, Inc. (SEDG - Free Report) reported third-quarter 2023 adjusted loss of 55 cents per share, which missed the Zacks Consensus Estimate of earnings of 68 cents. The bottom line also deteriorated from the prior-year quarter’s reported earnings of 91 cents per share.
Barring one-time adjustments, the company recorded a GAAP loss of $1.08 per share against earnings of 43 cents in the year-ago period.
Revenues
The company’s quarterly revenues of $725.3 million missed the Zacks Consensus Estimate of $766.7 million by 5.4%. The top line also declined 13% from the year-ago quarter’s figure of $836.7 million.
Revenues from the solar segment totaled $676.4 million, down 14% from $788.6 million registered in the prior-year period.
Operational Highlights
SolarEdge shipped a total of 3.8 gigawatts of inverters and 121 megawatt-hours of batteries in the reported quarter.
The adjusted gross margin contracted 650 basis points to 20.8% from the prior-year figure of 27.3%.
Adjusted operating expenses went up 18% year over year to $128 million.
The adjusted operating income totaled $23.1 million, down 81% from the year-ago quarter’s figure of $120.2 million.
Financial Performance
SolarEdge had $551.1 million in cash and cash equivalents as of Sep 30, 2023, compared with $783.1 million as of Dec 31, 2022.
The cash outflow from operating activities amounted to $40.2 million compared with $80 million in the year-ago period.
Total long-term liabilities were $1,287.5 million as of Sep 30, 2023, compared with $1,199.9 million as of Dec 31, 2022.
Q4 Guidance
SEDG expects revenues in the range of $300-$350 million for the fourth quarter of 2023. The Zacks Consensus Estimate for the same is pegged at $1.05 billion, higher than the midpoint of the guided range.
Revenues from the solar segment are projected in the range of $275-$320 million for the same time frame.
While the company’s adjusted gross margin is estimated in the range of 5-8%, the same for the solar segment is anticipated in the band of 7-10%.
SEDG expects adjusted operating expenses in the $126-$130 million range.
Zacks Rank
SolarEdge currently carries a Zacks Rank #5 (Strong 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 2023 adjusted earnings of $1.02 per share, which highlights an 18.4% decline from $1.25 reported in the prior-year quarter. The bottom line came in line with the Zacks Consensus Estimate.
Enphase Energy’s third-quarter revenues of $551.1 million missed the Zacks Consensus Estimate of $562 million by 1.9%. The top line also declined 13.2% from the prior-year quarter’s reported figure of $634.7 million.
JinkoSolar Holding Co. Ltd.’s (JKS - Free Report) reported third-quarter 2023 earnings per American Depositary Share (ADS) of $2.59, which beat the Zacks Consensus Estimate of $1.96 by 32.1%. The company reported earnings per ADS of 59 cents in the year-ago quarter.
In the quarter under review, JinkoSolar’s total revenues of $4,363.2 million surpassed the Zacks Consensus Estimate of $4,224 million by 3.3%. The top line surged 63.1% on a year-over-year basis, driven by an increase in solar module shipments.
First Solar (FSLR - Free Report) reported third-quarter 2023 earnings of $2.50 per share against the prior-year quarter’s reported loss of 46 cents per share. The bottom line beat the Zacks Consensus Estimate of $2.09 by 19.6%.
First Solar’s third-quarter net sales were $801.1 million, which lagged the Zacks Consensus Estimate of $901 million by 11.1%. However, the top line improved 27.4% from the year-ago quarter’s figure of $628.9 million.
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SolarEdge Technologies, Inc. (SEDG - Free Report) reported third-quarter 2023 adjusted loss of 55 cents per share, which missed the Zacks Consensus Estimate of earnings of 68 cents. The bottom line also deteriorated from the prior-year quarter’s reported earnings of 91 cents per share.
Barring one-time adjustments, the company recorded a GAAP loss of $1.08 per share against earnings of 43 cents in the year-ago period.
Revenues
The company’s quarterly revenues of $725.3 million missed the Zacks Consensus Estimate of $766.7 million by 5.4%. The top line also declined 13% from the year-ago quarter’s figure of $836.7 million.
Revenues from the solar segment totaled $676.4 million, down 14% from $788.6 million registered in the prior-year period.
Operational Highlights
SolarEdge shipped a total of 3.8 gigawatts of inverters and 121 megawatt-hours of batteries in the reported quarter.
The adjusted gross margin contracted 650 basis points to 20.8% from the prior-year figure of 27.3%.
Adjusted operating expenses went up 18% year over year to $128 million.
The adjusted operating income totaled $23.1 million, down 81% from the year-ago quarter’s figure of $120.2 million.
Financial Performance
SolarEdge had $551.1 million in cash and cash equivalents as of Sep 30, 2023, compared with $783.1 million as of Dec 31, 2022.
The cash outflow from operating activities amounted to $40.2 million compared with $80 million in the year-ago period.
Total long-term liabilities were $1,287.5 million as of Sep 30, 2023, compared with $1,199.9 million as of Dec 31, 2022.
Q4 Guidance
SEDG expects revenues in the range of $300-$350 million for the fourth quarter of 2023. The Zacks Consensus Estimate for the same is pegged at $1.05 billion, higher than the midpoint of the guided range.
Revenues from the solar segment are projected in the range of $275-$320 million for the same time frame.
While the company’s adjusted gross margin is estimated in the range of 5-8%, the same for the solar segment is anticipated in the band of 7-10%.
SEDG expects adjusted operating expenses in the $126-$130 million range.
Zacks Rank
SolarEdge currently carries a Zacks Rank #5 (Strong 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 2023 adjusted earnings of $1.02 per share, which highlights an 18.4% decline from $1.25 reported in the prior-year quarter. The bottom line came in line with the Zacks Consensus Estimate.
Enphase Energy’s third-quarter revenues of $551.1 million missed the Zacks Consensus Estimate of $562 million by 1.9%. The top line also declined 13.2% from the prior-year quarter’s reported figure of $634.7 million.
JinkoSolar Holding Co. Ltd.’s (JKS - Free Report) reported third-quarter 2023 earnings per American Depositary Share (ADS) of $2.59, which beat the Zacks Consensus Estimate of $1.96 by 32.1%. The company reported earnings per ADS of 59 cents in the year-ago quarter.
In the quarter under review, JinkoSolar’s total revenues of $4,363.2 million surpassed the Zacks Consensus Estimate of $4,224 million by 3.3%. The top line surged 63.1% on a year-over-year basis, driven by an increase in solar module shipments.
First Solar (FSLR - Free Report) reported third-quarter 2023 earnings of $2.50 per share against the prior-year quarter’s reported loss of 46 cents per share. The bottom line beat the Zacks Consensus Estimate of $2.09 by 19.6%.
First Solar’s third-quarter net sales were $801.1 million, which lagged the Zacks Consensus Estimate of $901 million by 11.1%. However, the top line improved 27.4% from the year-ago quarter’s figure of $628.9 million.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
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