SolarEdge (SEDG) Q3 Earnings Beat Estimates, Revenues Up Y/Y

SolarEdge Technologies, Inc. (NASDAQ:SEDG) reported third-quarter 2019 adjusted earnings of $1.21 per share, which surpassed the Zacks Consensus Estimate of 99 cents by 22.2%. The bottom line, moreover, rose 28.7% from 94 cents in the prior-year quarter.

Barring one-time adjustments, the company posted GAAP earnings of 81 cents per share compared with 66 cents in the year-ago quarter.

Revenues

SolarEdge’s revenues of $410.6 million in the third quarter surpassed the Zacks Consensus Estimate of $400 million by 2.7%. The top line also surged 73.5% from the year-ago quarter’s $236.6 million on solid shipments.

Operational Highlights

SolarEdge shipped a total of 1.5 Gigawatts (AC) of inverters in the reported quarter.

Gross profit totaled $139.3 million, surging 78.6% from $78 million a year ago.

Total operating expenses soared 66.8% year over year to $73.3 million. The uptick can be attributed to higher research & development, sales & marketing, general & administrative and non-recurring expenses.

Operating income during the quarter totaled $66 million, surging 94% from $34 million in the year-ago quarter.

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

Financial Performance

SolarEdge had $247.3 million of cash and cash equivalents as of Sep 30, 2019, up from $187.8 million at the end of 2018.

Cash flow from operating activities amounted to $175.9 million at the end of third-quarter 2019, down from $142.2 million a year ago.

Long-term liabilities were $265 million at the end of the third quarter compared with $168 million as of Dec 31, 2018.

Guidance

For fourth-quarter 2019, SolarEdge expects revenues of $410-$420 million. The Zacks Consensus Estimate for the same is pegged at $399.7 million, lower than the company’s guided range.

Additionally, revenues from solar products in the third quarter are projected to be $388-$398 million.

While the company’s GAAP gross margin is expected to be 32-34%, gross margin from the sale of solar products is anticipated to be 33-35%.

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

SunPower Corp. (NASDAQ:SPWR) reported adjusted earnings of 22 cents per share in third-quarter 2019 against the Zacks Consensus Estimate of a loss of a penny. The company had incurred a loss of 29 cents per share in the year-ago quarter.

Enphase Energy, Inc. (NASDAQ:ENPH) reported third-quarter 2019 adjusted earnings of 30 cents per share, which surpassed the Zacks Consensus Estimate of 25 cents by 20%. The bottom line also improved a massive 650% from 4 cents reported in the prior-year quarter.

First Solar Inc. (NASDAQ:FSLR) reported third-quarter 2019 adjusted earnings of 29 cents per share, missing the Zacks Consensus Estimate of $1.06 by 72.6%. The reported number, however, grew from the prior-year quarter’s loss per share of 18 cents.

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