Israeli solar energy company SolarEdge Technologies (Nasdaq: SEDG), which develops and markets solar inverters for photovoltaic arrays and other energy generation and storage products, has formed a joint venture with Saudi Arabian smart energy company Ajlan & Bros Holding (ABH). The joint venture will support the deployment of smart renewable energy solutions in Saudi Arabia, in-line with the Saudi Vision 2030 initiative that aims to reduce the country’s dependence on oil by the end of this decade.
Meanwhile SolarEdge's share price is down 13.10% in premarket trading at $208.11, after the company reported its second quarter 2023 results and forecast third quarter revenue of $880-920 million, 5.1%-9.9% higher than the corresponding quarter, but below the analysts' expectations of over $1 billion.
In the second quarter of 2023, SolarEdge reported revenue of $991 million, 36% higher than the corresponding quarter of 2022. SolarEdge reported GAAP net profit of $120 million in the second quarter and non-GAAP net profit of $157 million, up from $56.7 million in the corresponding quarter of 2022. Non-GAAP earning per share in the second quarter of 2023 was $2.62, above the analysts' expectations by $0.10.
SolarEdge CEO Zvi Lando said, "We are pleased with our results for the second quarter, in particular our strong performance in Europe in both the residential and commercial solar segments. While the U.S. residential solar market is currently seeing some headwinds primarily related to higher interest rates, we are navigating through this period by leveraging our geographic and multi-segment strengths in the solar markets and expect to benefit from the positive long-term outlook for this sector."
On the lower than expected third quarter revenue forecast CFO Ronen Faier said, " When we look at the guidance for the next quarter, we need to look a little bit region by region because we see a little bit of a different dynamics. I would say that most of the reduction that we see is coming, first of all, from less revenues of batteries, mostly in Europe.
Published by Globes, Israel business news - en.globes.co.il - on August 2, 2023.
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