SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2019 adjusted earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 62 cents by 3.2%. The bottom-line figure, however, declined 26.4% from 87 cents registered in the prior-year quarter.
Barring one-time adjustments, the company posted GAAP earnings of 39 cents per share compared with 75 cents in the year-ago quarter.
The year-over-year downside can be attributed to higher operating expenses that the company incurred in the first quarter.
SolarEdge’s revenues of $271.9 million in the first quarter surpassed the Zacks Consensus Estimate of $265 million by 2.4%. The top line also surged 29.5% from the year-ago quarter’s $209.9 million, on account of solid shipments.
SolarEdge shipped a total of 1.1 Gigawatts (AC) of inverters in the reported quarter.
Gross profit totaled $86.1 million, up 8.2% from $79.6million a year ago.
Total operating expenses increased 49.5% year over year to $58.1 million. The uptick can be attributed to higher research and development, sales and marketing as well as general and administrative expenses.
Operating income during the quarter totaled $28 million, down 31.1% from $40.8 million in the year-ago quarter.
SolarEdge had $226.5 million of cash and cash equivalents, as of Mar 31, 2019, up from $191.6 million at the end of 2018.
Cash flow from operating activities amounted to $56.5 million at the end of first quarter 2019, down from $64 million a year ago.
Long-term liabilities were $231.3 million at the end of the first quarter compared with $168 million as of Dec 31, 2018.
For second-quarter 2019, SolarEdge expects to generate revenues in the range of $310-$320 million. The Zacks Consensus Estimate for the same is pegged at $283.8 million, much lower than the company’s guided range.
Additionally, revenues from solar products during the second quarter are projected to be between $290 million and $300 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 33-35%.
SolarEdge currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Solar Releases
SunPower Corp. (SPWR - Free Report) is slated to release its first-quarter 2019 results on May 9. The company carries a Zacks Rank #2 (Buy).
Sunrun Inc. (RUN - Free Report) is scheduled to release its first-quarter 2019 results on May 8. The company sports a Zacks Rank of 1.
A Recent Solar Release
First Solar Inc. (FSLR - Free Report) incurred a loss of 64 cents per share in first-quarter 2019, wider than the Zacks Consensus Estimate of a loss of 13 cents. The reported figure also deteriorated significantly from the prior-year quarter’s earnings of 78 cents.
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