SolarEdge Up 12% After Hours on Second Quarter Revenue and Solid Earnings - Despite COVID-19

PV MagazineAugust 4, 2020933

Summary:

The popular solar inverter and solar energy storage business SolarEdge has been able to stay profitable amidst COVID-19.

Main Article:

SolarEdge Up 12% After Hours on Second Quarter Revenue and Solid Earnings - Despite COVID-19

Israeli solar inverter and solar energy storage business SolarEdge was able to keep its streak of profitable quarters going in the second three months of the year despite a squeeze in revenue and earnings during a tough, Covid-hit period for solar.

The solar company posted higher-than-expected second-quarter revenues of $331.9 million with 94% of it coming from solar power, all at a compressed gross margin of 31%. The solar company shipped 3.5 million of its solar power optimizers in the period, down from 5 million in the January-to-March window.

“This quarter, despite the challenges caused by Covid-19, we maintained healthy profitability while generating cash from operating activity,” said CEO Zivi Lando. “Our global strength, and in particular our loyal customer base in the Netherlands, Germany, Italy and Australia, softened the decline in U.S. demand this past quarter.”

Highlights

- Revenues of $332 million (down 23% quarter-on-quarter but up 2% from Q2 last year)

- Revenues from solar energy products of $310 million

- Gross margin of 31%

- Net income of $36.7 million, down 13% from the prior quarter

- Net diluted earnings per share of $0.70, down from $0.81 in the prior quarter

- 1.44 GWac of solar inverters shipped

Summary

Operating expenses came in at $73 million, up 1% from $72.2 million in the prior quarter and 12% from $65.3 million in the same quarter of last year.

Operating income was $30 million, down 56% from $67.8 million in the prior quarter and 34% from $45.4 million in Q2 2019.

As of June 30, cash and equivalents totaled $593 million, compared to $468 million on December 31.

Third-quarter guidance

SolarEdge provided the following guidance for the current quarter:

- Revenues of $325-350 million

- Non-GAAP (generally accepted accounting principles) gross margin of 32-34%

- Revenues from solar energy products to be $305-325 million

European rebound

According to the the solar company’s presentation, “sales and installations in Europe have returned, and in some countries [are] exceeding pre-Covid-19 [rates].” The solar company said it sees “signs of recovery in the U.S.”

SolarEdge added, it saw “tracking indicators such as weekly new orders, installation rates and distributor sell-outs all trending positively.”

The solar company stock was up 12% after hours and 82% this year.

With SolarEdge co-founder Guy Sella having died last year, fellow founder and vice president for product design Lior Handelsman recently announced his departure from the solar company and has been followed by public and media relations director Jessica Fishman.

Get creative and design your own rooftop solar system by going to HahaSmart and using the design DIY tool and see how much the system will cost using the price checker tool.

Solar system price checker

Comments

Design Your Solar Home

START

Hot spots

12 3

Input your address to see if it is solar friendly and how much you can save with solar.

Great. Your address is perfect for solar. Solar incentive is still available. Select monthly utility cost and calculate the size of solar system you will need now.

Whoa ! Going solar is definitely a smart decision.

kw System size years Payback period Lifetime savings

No money down, 100% finance is available.

adv

Get the Best Solar Inverters on The Market Here!

Do not show this information again.