Israeli solar energy company SolarEdge Technologies Ltd. (Nasdaq: SEDG) has beaten analysts' expectation in both its fourth quarter 2020 financial results and guidance for the first quarter of 2021, despite the challenges of the Covid-19 pandemic and its negative impact on the company.
The company, headed by CEO Zvi Lando, provides power optimizers, solar inverters and monitoring systems for photovoltaic arrays. The acquisition made several years ago also saw it enter the electric car market and yesterday it also reported its first deal in the sector to supply full electrical powertrain units and batteries for the production of the Fiat E-Ducato light commercial vehicle.
Revenue in the fourth quarter was $358 million, down 14.4% from the corresponding quarter of 2020, but above the analysts' forecasts. GAAP net profit fell 66.3% to $17.7 million and non-GAAP net profit fell 15.7% to $55.7 million ($0.12 per share), which was also above the analysts' predictions.
2020 revenue was $1.46 billion, up 2.4% from 2019. GAAP net profit in 2020 was $140 million, down 3.2% from 2019 and non-GAAP net profit was $224 million ($4.11 per share).
In the first quarter of 2021, SolarEdge's guidance also beat the analysts. The company expects revenue of $385-405 million and non-GAAP gross profit of 36%-38% in the solar sector and 34%-36% overall.
Lando said, "Our fourth quarter results are reflective of strength in the US residential market and record revenues from outside of Europe and the US, led by Australia. The return to growth in installations in the US residential market drove our sequential growth and return to the anticipated solar margins. Despite the global pandemic, we concluded the year with slight growth in revenues, healthy cash generation and are well positioned for 2021 and beyond, having invested significantly in development of new products to be released this year as well as development of our non-solar businesses, with readiness to supply full powertrain kits for the e-mobility sector in Europe."
SolarEdge's share price is currently down 0.35% on Nasdaq at $330.19, giving a market cap of $16.87 billion.
Published by Globes, Israel business news - en.globes.co.il - on February 17, 2021
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