Solar power systems company SolarEdge (NASDAQ: SEDG) will be announcing earnings results this Wednesday before market open. Here’s what to look for.
SolarEdge beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $340.2 million, up 44.5% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates and revenue guidance for next quarter missing analysts’ expectations. It reported 1,471 megawatts shipped, up 73.1% year on year.
Is SolarEdge a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting SolarEdge’s revenue to grow 67.2% year on year to $328 million, a reversal from the 37.9% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.23 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. SolarEdge has missed Wall Street’s revenue estimates twice over the last two years.
Looking at SolarEdge’s peers in the renewable energy segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Bloom Energy delivered year-on-year revenue growth of 35.9%, beating analysts’ expectations by 18.7%, and American Superconductor reported revenues up 21.4%, topping estimates by 8%. Bloom Energy traded up 4.7% following the results while American Superconductor was down 6%.
Read our full analysis of Bloom Energy’s results here and American Superconductor’s results here.
There has been positive sentiment among investors in the renewable energy segment, with share prices up 8.1% on average over the last month. SolarEdge is up 10% during the same time and is heading into earnings with an average analyst price target of $32.52 (compared to the current share price of $35.75).
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