Israeli solar energy company SolarEdge Technologies (Nasdaq: SEDG) share price opened 19% higher on Wall Street at $40, giving a market cap of $14.5 billion, after reporting "strong momentum" in its third quarter 2022 financial results.
The company, which develops and markets solar inverters for photovoltaic arrays and other energy generation and storage products, has been boosted by concerns about the energy crisis in Europe this winter, as countries try to wean themselves off Russian gas. Revenue from Europe rose 90% in the third quarter from the second quarter of last year and was up 42% in the third quarter from the preceding quarter. In German alone revenue rose 125% from the preceding quarter.
SolarEdge reported third quarter revenue of $836.7 million, up 15% from the third quarter of 2021. GAAP net profit was $24.7 million, up 64% from $15.1 million in the preceding quarter and down 53% from $53.0 million in the same quarter last year. GAAP net diluted EPS was $0.43, up from $0.26 in the prior quarter and down from $0.96 in the same quarter last year. Non-GAAP net profit was $54.1 million, down 5% from $56.7 million in the prior quarter and down 34% from $82.1 million in the same quarter last year. Non-GAAP net diluted EPS was $0.91, down from $0.95 in the prior quarter and down from $1.45 in the same quarter last year.
SolarEdge CEO Zvi Lando said that the strong momentum will continue into 2023 with a high number of new opportunities. "During the quarter we gave priority to consignments to Europe following the challenging winter expected there," Lando explained, saying that the main market in Europe is the household market. Consequently there was a fall in revenue of 19% compared with the preceding quarter to $252 million, although the company sees continued growth in the US commercial market over the next year.
Published by Globes, Israel business news - en.globes.co.il - on November 8, 2022.
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