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SolarEdge (SEDG) to Report Q3 Earnings: What's in the Cards?
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SolarEdge Technologies, Inc. (SEDG - Free Report) is set to report third-quarter 2020 results on Nov 2, after market close. In the last reported quarter, the company delivered an earnings surprise of 40.58%.
Moreover, the bottom line outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 13.75%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Courtesy of the novel coronavirus outbreak, SolarEdge has been experiencing a significant decline in installation rates, particularly in the United States, in recent times. Considering the fact that the pandemic started wreaking havoc on the economy from the beginning of the second quarter and its impact still persists, we expect low installation rates to have prevailed in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $342 million, indicating a 16.7% decline from the figure reported in the year-ago quarter.
SolarEdge Technologies, Inc. Price and EPS Surprise
In Europe, the company continued with its production ramp of the three-phase residential storage inverters and the new enlarged three-phase commercial inverter. This can be expected to have a favorable impact on its quarterly results, considering timely delivery of these products.
However, costs associated with such production ramp up might have weighed on its bottom line in the third quarter. Although the economy has been slowly recovering, shipments of products by SolarEdge might not have been in line with pre-pandemic levels. This in turn might have shot up its quarterly storage cost or idle facility cost. Consequently, we remain skeptical about earnings growth at SolarEdge this time around.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 82 cents per share, suggesting deterioration of 32.2% from the year-earlier quarter figure of $1.21.
Earnings Whispers
Our proven model predicts an earnings beat for SolarEdge Technologies this time around. 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.
Earnings ESP: The company’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.
Enphase Energy (ENPH - Free Report) came out with earnings of 30 cents per share for the third quarter, beating the Zacks Consensus Estimate of 24 cents per share.
First Solar Inc. (FSLR - Free Report) reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.
SunPower Corp. (SPWR - Free Report) incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.
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SolarEdge (SEDG) to Report Q3 Earnings: What's in the Cards?
SolarEdge Technologies, Inc. (SEDG - Free Report) is set to report third-quarter 2020 results on Nov 2, after market close. In the last reported quarter, the company delivered an earnings surprise of 40.58%.
Moreover, the bottom line outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 13.75%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Courtesy of the novel coronavirus outbreak, SolarEdge has been experiencing a significant decline in installation rates, particularly in the United States, in recent times. Considering the fact that the pandemic started wreaking havoc on the economy from the beginning of the second quarter and its impact still persists, we expect low installation rates to have prevailed in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $342 million, indicating a 16.7% decline from the figure reported in the year-ago quarter.
SolarEdge Technologies, Inc. Price and EPS Surprise
SolarEdge Technologies, Inc. price-eps-surprise | SolarEdge Technologies, Inc. Quote
In Europe, the company continued with its production ramp of the three-phase residential storage inverters and the new enlarged three-phase commercial inverter. This can be expected to have a favorable impact on its quarterly results, considering timely delivery of these products.
However, costs associated with such production ramp up might have weighed on its bottom line in the third quarter. Although the economy has been slowly recovering, shipments of products by SolarEdge might not have been in line with pre-pandemic levels. This in turn might have shot up its quarterly storage cost or idle facility cost. Consequently, we remain skeptical about earnings growth at SolarEdge this time around.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 82 cents per share, suggesting deterioration of 32.2% from the year-earlier quarter figure of $1.21.
Earnings Whispers
Our proven model predicts an earnings beat for SolarEdge Technologies this time around. 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.
Earnings ESP: The company’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 Technologies currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Solar Releases
Enphase Energy (ENPH - Free Report) came out with earnings of 30 cents per share for the third quarter, beating the Zacks Consensus Estimate of 24 cents per share.
First Solar Inc. (FSLR - Free Report) reported third-quarter 2020 adjusted earnings of $1.45 per share, which surpassed the Zacks Consensus Estimate of 60 cents by 141.7%.
SunPower Corp. (SPWR - Free Report) incurred an adjusted loss of 4 cents per share in third-quarter 2020, narrower than the Zacks Consensus Estimate of a loss of 5 cents.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>