SolarEdge Technologies, Inc
.
SEDG
is set to report first-quarter 2021 results on May 3, after market close. In the last reported quarter, the company delivered an earnings surprise of 12.64%.
Moreover, the bottom line outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed the mark in the remaining one, the average surprise being 21.65%.
Let’s see how things have shaped up prior to this announcement.
Factors at Play
Growing strength in the U.S. residential solar market along with healthy growth observed in the international markets, particularly across Europe and Australia, is expected to have contributed favorably to SolarEdge Technologies’ first-quarter revenues.
Furthermore, the company is expected to have supplied approximately 85% of its U.S. products without tariffs by the end of the first quarter as it continues to ramp up production in its Sella 1 manufacturing facility in Israel along with its facilities in Vietnam and Hungary. Also, consistently strong demand for its EnergyHub single-phase storage inverter is likely to have benefited SolarEdge Technologies’ top-line performance.
However, slower recovery of commercial installations worldwide on account of COVID-induced economic slowdown might have weighed on the company’s commercial shipments in the first quarter. This, in turn, might have hurt its revenue growth.
Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $396.1 million, indicating an 8.2% decline from the revenues generated in the first quarter of 2020.
However, on the third-quarter 2020 earnings call, management announced that costs related to the production ramp-up in the company’s Sella 1 factory will persist until the second quarter of 2021 as it continues to increase production its volumes. So, costs associated with scaling up production might have weighed on the March-quarter bottom line.
Moreover, its margins on the Italian manufacturing projects are currently negative, which might have affected SolarEdge Technologies’ upcoming earnings results in the form of higher costs.
Consequently, the Zacks Consensus Estimate for first-quarter earnings is pegged at $1.01 per share, suggesting a deterioration of 1.9% from the year-earlier quarter’s $1.03.
Earnings Whispers
Our proven model predicts an earnings beat for SolarEdge Technologies this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat.
Earnings ESP
: SolarEdge Technologies has an Earnings ESP of +0.99%. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
Zacks Rank
: SolarEdge Technologies currently carries a Zacks Rank #3. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
SolarEdge Technologies, Inc. Price and EPS Surprise
Upcoming Solar Releases
Sunrun
RUN
is set to release first-quarter 2021 results on May 5.
SunPower Corporation
SPWR
is set to release first-quarter 2021 results on May 5.
A Recent Solar Release
Enphase Energy, Inc
.
ENPH
reported first-quarter 2021 adjusted earnings of 56 cents per share, which surpassed the Zacks Consensus Estimate of 41 cents by 36.6%.
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