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Results from 'Magnificent Seven' duo show cloud revenue boosted by strong AI demand

SolarEdge (SEDG) Q4 Earnings Beat Estimates, Revenues Up Y/Y

Zacks Equity Research
·4 min read

SolarEdge Technologies SEDG reported fourth-quarter 2019 adjusted earnings of $1.65 per share, which surpassed the Zacks Consensus Estimate of $1.30 by 26.9%. Moreover, the bottom-line figure surged 161.9% from 63 cents in the prior-year quarter.

Barring one-time adjustments, the company posted GAAP earnings of $1.03 per share compared with 27 cents in the year-ago quarter.

For 2019, SolarEdge’s adjusted earnings came in at $4.44 per share, which exceeded the Zacks Consensus Estimate of $4.05 by 9.6%. The reported figure also jumped 40% from $3.17 a year ago.

Revenues

Solar Edge’s revenues of $418.2 million in the fourth quarter surpassed the Zacks Consensus Estimate of $415.3 million by 0.7%. Further, the top line surged 58.6% from the year-ago quarter’s $263.7 million.

For 2019, the company’s revenues of $1,425.7 million exceeded the Zacks Consensus Estimate of $1,420 million by 0.4% and soared 52.1% from the year-ago quarter’s figure.

Operational Highlights

While SolarEdge shipped a total of 1.6 Gigawatts (AC) of inverters in the reported quarter, it shipped 5.6 Gigawatts (AC) of inverters in 2019.

Gross profit totaled $143.2 million, jumping 79.7% from $79.7 million a year ago.

Total operating expenses grew 66.3% year over year to $92.7 million, owing to higher research & development, sales & marketing and other operating expenses.

Operating income during the quarter was $50.5 million, up 111% from $24 million in the year-ago quarter.

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise
SolarEdge Technologies, Inc. Price, Consensus and EPS Surprise

SolarEdge Technologies, Inc. price-consensus-eps-surprise-chart | SolarEdge Technologies, Inc. Quote

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Financial Performance

SolarEdge had $223.9 million of cash and cash equivalents, as of Dec 31, 2019, up from $187.8 million at the end of 2018.

Cash flow from operating activities amounted to $259 million at 2019-end, up from $189.1 million a year ago.

Long-term liabilities were $246.2 million at the end of 2019 compared with $168 million as of Dec 31, 2018.

Guidance

For first-quarter 2020, SolarEdge expects to generate revenues of $425-$440 million. The Zacks Consensus Estimate for the same is pegged at $358.3 million, lower than the company’s guided range.  

Additionally, revenues from solar products during the first quarter are projected between $405 million and $415 million.

While the company’s GAAP gross margins are expected to be 32-34%, gross margins from the sale of solar products are expected to be 33-35%.

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.

A Recent Solar Release

Enphase Energy, Inc. ENPH reported fourth-quarter 2019 adjusted earnings of 39 cents per share, which surpassed the Zacks Consensus Estimate of 33 cents by 18.2%. The bottom line also surged a massive 875% from 4 cents reported in the prior-year quarter.

Upcoming Solar Releases

Sunrun RUN is set to release fourth-quarter results on Feb 27.

Vivint Solar VSLR is expected to post fourth-quarter 2019 results soon.

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Enphase Energy, Inc. (ENPH) : Free Stock Analysis Report
 
Vivint Solar, Inc. (VSLR) : Free Stock Analysis Report
 
SolarEdge Technologies, Inc. (SEDG) : Free Stock Analysis Report
 
Sunrun Inc. (RUN) : Free Stock Analysis Report
 
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