SolarEdge soars on strong results and guidance

SolarEdge panels Photo: PR

The Israeli solar energy technology company's share price rose 20% in after-hours trading on Nasdaq yesterday.

The share price of SolarEdge Technologies, Inc. (SEDG) soared by 20% in late trading on Nasdaq yesterday, and is up by a similar amount in pre-trading today. This follows first quarter results that beat analysts estimates, and strong guidance for the second quarter.

SolarEdge develops systems for optimization and monitoring of solar energy systems, and has recently to other areas of business besides solar energy. At SolarEdge's closing price yesterday it has a market cap of $2.1 billion. The surge in after-hours trading brings that figure to close to $2.5 billion.

SolarEdge's first quarter revenue grew 29.5% to $272 million, some $6 million above the market estimate. On GAAP basis, net profit attributable to shareholders was $19 million, less than the $35.7 million profit posted in the corresponding quarter of 2018. On a non-GAAP basis, net profit was $32.9 million, 22.6% below the profit in the corresponding quarter, but higher than the analysts' estimates: earning per share were $0.64, which compares with an estimate of $0.60. SolarEdge generated $56.5 million cash from regular activity in the first quarter, at the end of which it had cash of $400 million.

The company has made three acquisitions recently: SMRE of Italy; Kokam of South Korea; and Israeli company Gamatronic.

For the second quarter, SolarEdge projects revenue of $310-320 million, representing 37-41% growth over the corresponding quarter, and substantially higher than the consensus analysts' estimate of $281 million. $290-300 of the projected revenue is expected to come from the solar market.

“We opened 2019 with a strong quarter and record revenues driven by substantial growth, particularly in Europe, which demonstrates our leading position in the global solar inverter market,” said Guy Sella, founder, chairman and CEO of SolarEdge. “This quarter we concluded the acquisition of SMRE which provides us with an entry into the e-mobility market and we continued the integration of Kokam and the building of our UPS business. We are very happy to be able to continue to grow our solar business while leveraging profits for further investment in our new areas of technology development, which include UPS products, lithium ion batteries and integrated powertrain electronics for electric vehicles.”

Published by Globes, Israel business news - en.globes.co.il - on May 7, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

SolarEdge panels Photo: PR
SolarEdge panels Photo: PR
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