Israeli solar energy company SolarEdge Technologies Inc. (Nasdaq: SEDG) is down 4.2% in premarket trading after publishing its financial results for the third quarter of 2021. The company, which provides solar energy monitoring and optimization systems in the field of energy storage, reported $526 million revenue in the third quarter, up 55.7% from the corresponding quarter of 2020 but slightly below analysts' expectations, although within the company's guidance range. Non-GAAP earnings per share was $1.45, $0.09 above the analysts' profit forecast.
SolarEdge's share price has been rising sharply over the past week, but it closed yesterday down 1.60% at $355.16, giving a market cap of $18.564 billion. SolarEdge is now Israel's most valuable company having leapfrogged NICE Systems Ltd. (Nasdaq: NICE; TASE:NICE) last week. Expectations were high for SolarEdge's results after rival Enphase Energy published strong results last week.
The share price may also be falling because of disappointment in SolarEdge's fourth quarter guidance. The company sees revenue of $530-560 million, up 48%-56% from the corresponding quarter of 2020, in the lower-middle range of the analysts. This would see SolarEdge end 2021 with revenue of $1.94-1.97 billion, 33%-35% up from 2020.
GAAP net profit for the third quarter was $53 million, up 21.2% from the corresponding quarter of 2020 and non-GAAP net profit in the third quarter was $82.1 million, up 13.2% from the corresponding quarter.
SolarEdge CEO Zvi Lando said, We are pleased with our record revenues in the third quarter amid the unprecedented global logistics and supply chain challenges. Despite a twelve week Covid-related shutdown in our Vietnam manufacturing facility during the quarter, we were able to supply products to meet the growing demand of our customers. We are exiting the third quarter with record backlog for the fourth quarter of 2021 and the first quarter of 2022 and will continue navigating the various challenges in order to support our customers’ businesses."
Published by Globes, Israel business news - en.globes.co.il - on November 3, 2021.
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