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

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SolarEdge Technologies, Inc. (SEDG - Free Report) reported first-quarter 2020 adjusted earnings of $1.03 per share, which missed the Zacks Consensus Estimate of $1.20 by 14.2%. The bottom-line figure, however, surged 47.1% from 70 cents reported in the prior-year quarter.

Barring one-time adjustments, the company posted GAAP earnings of 81 cents per share compared with 39 cents in the year-ago quarter.

Revenues

SolarEdge’s revenues of $431.2 million in the first quarter surpassed the Zacks Consensus Estimate of $418 million by 3.2%. The top line also surged 59% from the year-ago quarter’s $271.9 million on solid shipments.

Operational Highlights

SolarEdge shipped a total of 1.85 Gigawatts (AC) of inverters in the reported quarter.

Gross profit totaled $140 million, surging 62.6% from $86.1 million a year ago.

Total operating expenses rose 24.3% year over year to $72.2 million. The uptick can be attributed to higher research and development, sales and marketing, and general and administrative expenses.

Operating income during the quarter totaled $67.8 million, soaring 141.7% from $28 million in the year-ago quarter.

SolarEdge Technologies Inc Price, Consensus and EPS Surprise

Financial Performance

SolarEdge had $324.1 million of cash and cash equivalents as of Mar 31, 2020, up from $223.9 million at the end of 2019.

Cash flow from operating activities amounted to $107.7 million at the end of first-quarter 2020, up from $56.4 million a year ago.

Long-term liabilities were $257.7 million at the end of the first quarter compared with $246.2 million as of Dec 31, 2019.

Guidance

For second-quarter 2020, SolarEdge expects to generate revenues of $305-$335 million. The Zacks Consensus Estimate for the same is pegged at $372.3 million, higher than the company’s guided range.

Additionally, revenues from solar products during the second quarter are projected to be in the range of $285-$315 million.

While the company’s GAAP gross margins are expected to be 30-32%, gross margins from the sale of solar products are anticipated to be 32-34%.

Zacks Rank

SolarEdge currently carries a Zacks Rank #4 (Sell).

Recent Solar Releases

Enphase Energy (ENPH - Free Report) , a Zacks Rank #2 (Buy) company, reported first-quarter 2020 adjusted earnings of 38 cents per share, which surpassed the Zacks Consensus Estimate of 32 cents by 18.8%. The bottom line also surged a massive 375% from 8 cents reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

SunPower (SPWR - Free Report) , a Zacks Rank #3 (Hold) company, reported first-quarter 2020 adjusted loss of 10 cents per share, narrower than the Zacks Consensus Estimate of a loss of 21 cents and a loss of 41 cents reported in the year-ago quarter.

First Solar (FSLR - Free Report) , a Zacks Rank #3 company, reported first-quarter 2020 adjusted earnings of 85 cents per share, which surpassed the Zacks Consensus Estimate of 24 cents by 254.2%. The bottom line also grew from the year-ago quarter's loss of 64 cents per share.

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