SolarEdge slumps on disappointing Q2 revenue

SolarEdge panels Credit: Company website
SolarEdge panels Credit: Company website

The solar energy company has lost its position as Israel's most valuable company to Pagaya Technologies.

Israeli solar energy company SolarEdge Technologies (Nasdaq: SEDG) share price is down 12.85% at $318.47, in premarket trading on Wall Street, after publishing its financial results for the second quarter of 2022. SolarEdge had ended yesterday's session as the most valuable Israeli company, with a market cap of $20.239 billion. But with its market cap now down to $17.6 billion, it has lost that distinction to fintech company Pagaya Technologies (Nasdaq: PGY), which has a market cap of $19.6 billion, after completing its SPAC merger and listing on Wall Street in late June.

Investors were disappointed in SolarEdge's revenue, which missed the analysts' expectations. Second quarter revenue was $727.8 million, up 11% from the corresponding quarter of 2021 but lower than the analysts' forecast of $731 million. Non-GAAP earnings per share was $0.95, well above the analysts' expectations of NIS 0.88.

SolarEdge develops and markets inverters for photovoltaic arrays energy generation monitoring software, battery energy storage products, and other related products and services to residential, commercial and industrial customers.

SolarEdge CEO Zvi Lando said, "The growing demand for energy in general and clean energy in particular continued to drive top line growth this quarter resulting in record revenues in Europe and the US. While we continue to face growing supply chain challenges, some related to our rapid growth in an environment of component shortages, and macro-economic trends as a result of our global footprint, we continue to support our customers while building the infrastructure for sustainable growth."

SolarEdge published guidance for the third quarter of 2022. Revenue is expected to be $810-840 million with the mid-range figure of $825 million, above the analysts' expectations of $821 million. The company sees non-GAAP gross margin within the range of 26% to 29%, non-GAAP operating profit to be within the range of $90 million to $110 million, revenue from solar segment to be within the range of $765 million to $795 million, and gross margin from solar segment expected to be within the range of 27% to 30%.

Published by Globes, Israel business news - en.globes.co.il - on August 3 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

SolarEdge panels Credit: Company website
SolarEdge panels Credit: Company website
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