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SolarEdge (SEDG) Q1 Earnings Beat Estimates, Revenues Rise Y/Y

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SolarEdge Technologies, Inc.’s (SEDG - Free Report) shares gained a solid 6.6% on May 4, reflecting investors’ optimism following first-quarter 2023 results.

The company reported adjusted earnings of $2.90 per share, which surpassed the Zacks Consensus Estimate of $1.98 by a solid 46.5%. The bottom line also improved 141.7% from the prior-year quarter’s $1.20 per share.

Barring one-time adjustments, the company recorded GAAP earnings of $2.35 per share compared with 60 cents in the year-ago period.

 

Revenues

The company’s quarterly revenues of $943.9 million outpaced the Zacks Consensus Estimate of $930 million by 1.6%. The top line also surged 44.1% from the year-ago quarter’s $655.1 million.

Revenues from the solar segment totaled $908.5 million, up 49% from $608 million registered in the prior-year period.

Operational Highlights

SolarEdge shipped a total of 3.6 gigawatts of inverters and 221 megawatt-hours of batteries in the reported quarter.

The adjusted gross margin expanded 420 basis points to 32.6% from the prior-year figure of 28.4%.

Adjusted operating expenses went up 25% year over year to $123.6 million.

Adjusted operating income totaled $144.2 million, up 183.3% from the year-ago quarter’s $50.9 million.

Financial Performance

SolarEdge had $727.8 million of cash and cash equivalents as of Mar 31, 2023, compared with $783.1 million as of Dec 31, 2022.

Cash flow from operating activities amounted to $7.9 million against cash outflow of $163 million in the year-ago period.

Total long-term liabilities came in at $1,245.6 million as of Mar 31, 2023, compared with $1,199.9 million as of Dec 31, 2022.

Q2 Guidance

SEDG expects revenues in the range of $970-$1,010 million for the second quarter of 2023. The Zacks Consensus Estimate for the same is pegged at $989.2 million, lower than the midpoint of the guided range.

Revenues from the solar segment are projected in the range of $930-$980 million for the same time frame.

While the company’s adjusted gross margin is estimated in the range of 32-35%, the same for the solar segment is anticipated in the band of 34-37%.
SEDG expects adjusted operating profit in the $195-$215 million range.

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

First Solar, Inc. (FSLR - Free Report) reported first-quarter 2023 earnings of 40 cents per share, which missed the Zacks Consensus Estimate of 99 cents by 59.6%. However, the bottom line improved significantly from the prior-year quarter’s reported loss of 41 cents per share.

Net sales totaled $548 million, which missed the Zacks Consensus Estimate of $724 million by 23.7%. However, the top line improved 49.4% from the year-ago quarter’s $367 million.

Enphase Energy, Inc. (ENPH - Free Report) reported first-quarter 2023 adjusted earnings of $1.37 per share, highlighting a solid 73.4% improvement from 79 cents reported in the prior-year quarter. The bottom line also beat the Zacks Consensus Estimate of $1.21 by 13.2%.

Revenues of $726 million beat the Zacks Consensus Estimate of $723 million by 0.4%. The top line soared 64.5% from the prior-year quarter’s reported figure of $441.3 million.

JinkoSolar Holding Co. Ltd. (JKS - Free Report) reported first-quarter 2023 earnings per American Depositary Share (“ADS”) of $2.18, which beat the Zacks Consensus Estimate of 37 cents. The company reported earnings per ADS of 10 cents in the year-ago quarter, reflecting a significant improvement from the prior-year figure.

JinkoSolar’s total revenues of $3,396.9 million surpassed the Zacks Consensus Estimate of $3,302 million by 2.9%. The top line improved 45.8% on a year-over-year basis due to an increase in solar module shipments.

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