SolarEdge shares have taken a hit today, trading lower in sympathy with Enphase. The latter company reported worse-than-expected Q1 sales and issued weak Q2 guidance. Although Enphase managed to beat expectations with Q2 revenue of $125.5M, this still represented a 22% decline from Q1 levels, excluding Q1 safe harbor. However, despite the drop in sales, the company achieved record non-GAAP gross margin of 39.6%. It’s worth noting that Enphase did about $100M in US revenues, which make up 80% of overall revenues.
On the other hand, SolarEdge Technologies – which makes solar-power panels and inverters – posted adjusted earnings of 95 cents a share for the second quarter. This was significantly lower than the consensus of $1.38 a share among analysts. Revenue of $727.8 million was slightly lower than the consensus of $730.7 million. However, revenue from its solar-power segment hit a record of $688 million, above both J.P. Morgan’s $680 million expectation and management’s previous guide. Despite the mixed results, analysts remain bullish, given strong demand for the company’s products.
While it’s unclear why SolarEdge shares are trading lower in sympathy with Enphase, it’s possible that investors are concerned about the overall health of the solar industry. Enphase’s weak Q1 sales and Q2 guidance may have spooked some investors, causing them to sell off shares in both companies. Nonetheless, SolarEdge’s strong revenue from its solar-power segment suggests that there is still demand for its products.
SolarEdge Technologies Inc. （SEDG） Shows Strong Earnings Growth and Positive Projections in 2023
On April 25, 2023, SolarEdge Technologies Inc. （SEDG） had a previous close of $318.45, but opened at $313.61. The market cap for SEDG is $17.9B.
SEDG has seen a significant increase in earnings growth this year of +52.72%. Additionally, the company has a projected earnings growth of +37.60% over the next five years. Revenue growth for SEDG was +58.38% last year.
The P/E ratio for SEDG is 175.4. The price/sales ratio is 5.29, and the price/book ratio is 8.23.
SEDG is performing well in comparison to other companies in the Electrical Products industry.
SEDG is expected to release its next quarterly earnings report on May 4, 2023, with an EPS forecast of $1.94.
Investment Analysis: Solaredge Technologies Inc Shows Strong Financial Performance and Positive Consensus Among Analysts
On April 25, Solaredge Technologies Inc （SEDG） had a median target price of $370.00, with a high estimate of $452.00 and a low estimate of $305.00, as predicted by 29 analysts offering 12-month price forecasts. This represents a +19.65% increase from the last price of $309.24.
The current consensus among 35 polled investment analysts is to buy stock in Solaredge Technologies Inc, and this rating has remained steady since April, when it was unchanged from a buy rating. This indicates that investors have faith in the company’s ability to perform well in the future.
Furthermore, Solaredge Technologies Inc reported earnings per share of $1.94 and sales of $932.8M for the current quarter, with a reporting date of May 04. This is a positive sign for the company, as it indicates that it is performing well financially.
Overall, the data suggests that Solaredge Technologies Inc is a strong investment option for those looking to invest in the renewable energy sector. With a positive consensus among investment analysts and strong financial performance, it is likely that the company will continue to perform well in the coming months. However, as with any investment, it is important to conduct thorough research and analysis before making a decision to buy or sell SEDG stock.
