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SolarEdge (SEDG) Q1 Earnings Miss Estimates, Revenues Down Y/Y

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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.

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