Solar power systems company SolarEdge (NASDAQ:SEDG) will be reporting results this Thursday before market open. Here’s what to expect.
SolarEdge beat analysts’ revenue expectations by 7.3% last quarter, reporting revenues of $219.5 million, up 7.4% year on year. It was a strong quarter for the company, with a solid beat of analysts’ adjusted operating income estimates and a decent beat of analysts’ EPS estimates. It reported 1,208 megawatts shipped, up 27.7% year on year.
Is SolarEdge a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting SolarEdge’s revenue to grow 3.6% year on year to $274.9 million, a reversal from the 73.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.84 per share.
The majority of analysts covering the company have 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 three times over the last two years.
Looking at SolarEdge’s peers in the renewable energy segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Generac delivered year-on-year revenue growth of 6.3%, beating analysts’ expectations by 3.4%, and American Superconductor reported revenues up 79.6%, topping estimates by 11.4%. Generac traded up 28.9% following the results while American Superconductor was also up 29.4%.
Read our full analysis of Generac’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 2.1% on average over the last month. SolarEdge is down 1.6% during the same time and is heading into earnings with an average analyst price target of $18.57 (compared to the current share price of $26).
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