SolarEdge Technologies


SEDG

reported fourth-quarter 2020 adjusted earnings of 98 cents per share, which surpassed the Zacks Consensus Estimate of 87 cents by 12.6%. Moreover, the bottom-line figure plunged 40.6% from $1.65 per share in the prior-year quarter.

Barring one-time adjustments, the company posted GAAP earnings of 33 cents per share compared with $1.03 in the year-ago quarter.

For 2020, SolarEdge’s adjusted earnings came in at $4.11 per share, which exceeded the Zacks Consensus Estimate of $3.99 by 3%. The reported figure, however, declined 7.4% from $4.44 a year ago.

Revenues

Solar Edge’s revenues of $358.1 million in the fourth quarter surpassed the Zacks Consensus Estimate of $354.6 million by 1%. However, the top line declined 14% from the year-ago quarter’s $418.2 million.

For 2020, the company’s revenues of $1,459.3 million missed the Zacks Consensus Estimate of $1,460 million by a whisker and rose 2.4% from the year-ago quarter’s figure.

Operational Highlights

While SolarEdge shipped a total of 1.36 Gigawatts (AC) of inverters in the reported quarter, it shipped 6.1 Gigawatts (AC) of inverters in 2020.

Gross profit totaled $110.3 million, declining 23% from $143.2 million a year ago.

Total operating expenses grew 3.4% year over year to $95.9 million due to higher research & development, sales & marketing and general & administrative expenses.

Operating income during the quarter was $14.4 million, down 71.4% from $50.5 million in the year-ago quarter.

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

Financial Performance

SolarEdge had $827.1 million of cash and cash equivalents as of Dec 31, 2020, up from $223.9 million at the end of 2019.

Cash flow from operating activities amounted to $222.7 million at 2020-end, down from $259 million a year ago.

Long-term liabilities were $915.2 million at the end of 2020 compared with $246.2 million as of Dec 31, 2019.

Guidance

For first-quarter 2021, SolarEdge expects to generate revenues of $385-$405 million. The Zacks Consensus Estimate for the same is pegged at $373.6 million, lower than the company’s guided range.

Additionally, revenues from solar products during the first quarter are projected between $360 million and $375 million.

While the company’s GAAP gross margins are expected to be 34-36%, gross margins from the sale of solar products are expected to be 36-38%.

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


.

Upcoming Solar Releases

Sunrun


RUN

is set to release fourth-quarter 2020 results on Feb 25.

First Solar


FSLR

is set to release fourth-quarter 2020 results on Feb 25.

A Recent Solar Release

Enphase Energy


ENPH

reported fourth-quarter 2020 adjusted earnings of 51 cents per share, which surpassed the Zacks Consensus Estimate of 40 cents by 27.5%.

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