The share price of Israeli power optimizer SolarEdge Technologies (Nasdaq: SEDG) is up sharply after the solar inverter and monitoring systems for photovoltaic arrays company reported strong second quarter results. The share price is up 9.8% in pre-market trading at $283, giving a market cap of $14.7 billion. The solar energy company, led by CEO Zvi Lando, is also involved in interfacing areas such as energy storage for electric vehicles.
SolarEdge reported revenue of $480 million in the second quarter of 2021, up 18.4% from the preceding quarter and up 44.7% from the corresponding quarter of 2020, and well above the analysts' expectations of $455 million. Revenue in the first half of 2021 was $886 million, up 16.1% from the corresponding half of 2020.
GAAP net profit for the second quarter of 2021 was $45.1 million, up 23% from the corresponding quarter of 2020, however first half GAAP net profit of $75.2 million, was down 4.7% from the first half of 2020.
Non-GAAP net profit for the second quarter of 2021 was $72.5 million, 30.7% higher than the corresponding quarter of 2020. In the first half of 2021, non-GAAP net profit was $128 million, up from $103 million in the first half of 2020. Earnings per share in the second quarter of 2021 was $1.28, and $2.26 in the first half of 2021, $0.16 above the analysts' expectations.
SolarEdge sees third quarter 2021 revenue of $520-540 million, up 57% from the third quarter of 2020 and above the analysts' expectations of $505 million. Non-GAAP gross margin is expected to be within the range of 32% to 34% and gross margin from the solar segment is expected to be within the range of 35% to 37%
SolarEdge CFO Ronen Faier said, "There is a very strong increase in demand in all countries and in all the segments. In Europe we had a record quarter and in the US it wasn't a record but there was certainly growth and in the rest of the world it was a record quarter. Practically speaking the feeling is that everything connected to solar energy is rising and growing. On the other hand, there are still difficulties about parts, which aren't being distributed to the players in the market so that they can manufacture according to the demand that they see, and some of our demand is also lost.
Published by Globes, Israel business news - en.globes.co.il - on August 3, 2021
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