We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SolarEdge (SEDG) Down 0.4% Since Last Earnings Report: Can It Rebound?
Read MoreHide Full Article
It has been about a month since the last earnings report for SolarEdge Technologies (SEDG - Free Report) . Shares have lost about 0.4% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is SolarEdge due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
SolarEdge's Q4 Earnings Beat, Revenues Rise Y/Y
SolarEdge Technologies reported fourth-quarter adjusted earnings of $2.86 per share, which surpassed the Zacks Consensus Estimate of $1.60 by 78.8%. The bottom line however declined 160% from the prior-year quarter’s $1.10 per share.
Barring one-time adjustments, the company posted GAAP earnings of 36 cents per share compared with 74 cents in the year-ago quarter.
For 2022, the company reported adjusted earnings of $5.95 per share, up from $4.81 in 2021. The full-year bottom line also surpassed the Zacks Consensus Estimate of $4.80.
Revenues
SolarEdge’s fourth-quarter revenues of $890.7 million surpassed the Zacks Consensus Estimate of $875 million by 1.8%. The top line surged 61.4% from the year-ago quarter’s $551.9 million.
In 2022, the company recorded revenues worth $3.11 billion, up from $1.96 billion in 2021. The full-year revenues also surpassed the Zacks Consensus Estimate of $3.10 billion.
Revenues from the solar segment were $837 million in the fourth quarter, up 66% from $502.7 million in the prior-year quarter.
Operational Highlights
SolarEdge shipped a total of 3.1 gigawatts of inverters and 217.6 megawatt-hours of batteries in the reported quarter.
The adjusted gross margin contracted 100 basis points from the prior-year figure of 30.3% to 30.2%.
Adjusted operating expenses went up 26% year over year to $119 million.
The adjusted operating income in the quarter totaled $171.5 million, up 105% from the year-ago quarter’s $72.9 million.
Financial Performance
SolarEdge had $783.1 million of cash and cash equivalents as of Dec 31, 2022, up from $530.1 million as of Dec 31, 2021.
The cash flow from operating activities amounted to $31.3 million during 2022 compared with $214.1 million in the year-ago period.
Total long-term liabilities were $1,199.9 million as of Dec 31, 2022 compared with $1,065.7 million as of Dec 31, 2021.
Q1 Guidance
In the first quarter of 2023, SEDG expects revenues in the range of $915-$945 million. The Zacks Consensus Estimate for the same is pegged at $902.8 million, lower than the guided range.
Revenues from the solar segment in the first quarter are projected in the range of $875-$905 million.
While the company’s adjusted gross margin is estimated in the range of 28-31%, the gross margin in the solar segment is anticipated in the band of 31-34%.
The company expects adjusted operating profit in the range of $150-$170 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, SolarEdge has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SolarEdge has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
SolarEdge belongs to the Zacks Solar industry. Another stock from the same industry, Enphase Energy (ENPH - Free Report) , has gained 2.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Enphase Energy reported revenues of $724.65 million in the last reported quarter, representing a year-over-year change of +75.6%. EPS of $1.51 for the same period compares with $0.73 a year ago.
Enphase Energy is expected to post earnings of $1.20 per share for the current quarter, representing a year-over-year change of +55.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.8%.
Enphase Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SolarEdge (SEDG) Down 0.4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for SolarEdge Technologies (SEDG - Free Report) . Shares have lost about 0.4% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is SolarEdge due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
SolarEdge's Q4 Earnings Beat, Revenues Rise Y/Y
SolarEdge Technologies reported fourth-quarter adjusted earnings of $2.86 per share, which surpassed the Zacks Consensus Estimate of $1.60 by 78.8%. The bottom line however declined 160% from the prior-year quarter’s $1.10 per share.
Barring one-time adjustments, the company posted GAAP earnings of 36 cents per share compared with 74 cents in the year-ago quarter.
For 2022, the company reported adjusted earnings of $5.95 per share, up from $4.81 in 2021. The full-year bottom line also surpassed the Zacks Consensus Estimate of $4.80.
Revenues
SolarEdge’s fourth-quarter revenues of $890.7 million surpassed the Zacks Consensus Estimate of $875 million by 1.8%. The top line surged 61.4% from the year-ago quarter’s $551.9 million.
In 2022, the company recorded revenues worth $3.11 billion, up from $1.96 billion in 2021. The full-year revenues also surpassed the Zacks Consensus Estimate of $3.10 billion.
Revenues from the solar segment were $837 million in the fourth quarter, up 66% from $502.7 million in the prior-year quarter.
Operational Highlights
SolarEdge shipped a total of 3.1 gigawatts of inverters and 217.6 megawatt-hours of batteries in the reported quarter.
The adjusted gross margin contracted 100 basis points from the prior-year figure of 30.3% to 30.2%.
Adjusted operating expenses went up 26% year over year to $119 million.
The adjusted operating income in the quarter totaled $171.5 million, up 105% from the year-ago quarter’s $72.9 million.
Financial Performance
SolarEdge had $783.1 million of cash and cash equivalents as of Dec 31, 2022, up from $530.1 million as of Dec 31, 2021.
The cash flow from operating activities amounted to $31.3 million during 2022 compared with $214.1 million in the year-ago period.
Total long-term liabilities were $1,199.9 million as of Dec 31, 2022 compared with $1,065.7 million as of Dec 31, 2021.
Q1 Guidance
In the first quarter of 2023, SEDG expects revenues in the range of $915-$945 million. The Zacks Consensus Estimate for the same is pegged at $902.8 million, lower than the guided range.
Revenues from the solar segment in the first quarter are projected in the range of $875-$905 million.
While the company’s adjusted gross margin is estimated in the range of 28-31%, the gross margin in the solar segment is anticipated in the band of 31-34%.
The company expects adjusted operating profit in the range of $150-$170 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended upward during the past month.
VGM Scores
At this time, SolarEdge has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, SolarEdge has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
SolarEdge belongs to the Zacks Solar industry. Another stock from the same industry, Enphase Energy (ENPH - Free Report) , has gained 2.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2022.
Enphase Energy reported revenues of $724.65 million in the last reported quarter, representing a year-over-year change of +75.6%. EPS of $1.51 for the same period compares with $0.73 a year ago.
Enphase Energy is expected to post earnings of $1.20 per share for the current quarter, representing a year-over-year change of +55.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.8%.
Enphase Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.